Refer to the Table for a ?Ctional Economy

question 118

Multiple Choice

$$\begin{array} { | c | c | c | } \hline \text { Year } & \begin{array} { c } \text { Actual Budget, Percent of GDP } \\\text { (-deficits, +surpluses) }\end{array} & \begin{array} { c } \text { Cyclically-Adjusted Budget, Percent of GDP } \\\text { (-deficits, +surpluses) }\end{array} \\\hline 1 & 0 & 0 \\\hline 2 & - 3 & 0 \\\hline 3 & - 5 & - 2 \\\hline 4 & - 2 & - 2 \\\hline 5 & + 2 & + 1 \\\hline\end{array}$$ Refer to the table for a ?ctional economy. The changes in the budget conditions between Year 3 and 4 best re?ect

• A) demand-pull in?ation.
• B) cost-push in?ation.
• C) an expansion of real GDP and an automatic increase in tax revenues.
• D) a contractionary ?scal policy.

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Definitions:

Social Behaviour

Actions and interactions among individuals within a society, influenced by social norms, culture, and individual characteristics.

Giver

An individual who provides or transfers something to another without expecting anything in return, often enhancing social bonds or contributing to communal welfare.

Altruistic Behaviour

Actions taken to benefit others without expecting any benefit or reward in return.

Prosocial Behaviour

Acts that are positively valued by society.