Refer to the Following Figure When Answering the Following Questions

question 121

Multiple Choice

Refer to the following figure when answering the following questions:
-According to the figure,deflation was occurring

• A) between 2003 and 2004.
• B) from 1996 until 1999.
• C) from 1996 through 1999 and between 2003 and 2004.
• D) in none of the years shown.
• E) in all of the years shown.

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Definitions:

Government Spending

Expenditures made by the government sector on goods and services, including infrastructure, public services, and transfer payments.

Aggregate Supply

The total supply of goods and services that firms in an economy plan to sell during a specific time period.

Expansionary Government Spending

Expansionary government spending involves increased public expenditures aimed at stimulating economic growth, typically during periods of economic downturn or recession.

Recessions

Phases of transitory economic regression that see a drop in business and industrial activities, typically identified by a GDP decrease across two back-to-back quarters.