(Table 4: Market Basket Prices in Macroland) Table 4 Shows

question 90

Multiple Choice

(Table 4: Market Basket Prices in Macroland) Table 4 shows the cost of a given market basket of goods and services in Macroland over a four-year period. Based on the data, during which year did deflation occur?
$\begin{array}{l}\text { Table 4: Market Basket Prices in Macroland }\\\begin{array}{|l|l|l|l|l|}\hline & \text { Year 1 } & \text { Year 2 } & \text { Year 3 } & \text { Year 4 } \\\hline \text { Cost of the market basket } & \$ 600 & \$ 640 & \$ 630 & \$ 660 \\\hline\end{array}\end{array}$

• A) year 1
• B) year 2
• C) year 3
• D) year 4

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Definitions:

Exchange Theory

A social theory that explains human behavior in terms of the exchange of goods, services, and favors, aiming for balance and reciprocity in interpersonal relationships.

Norm Of Reciprocity

A social norm that prescribes individuals to respond to others' actions and gestures with similar actions, fostering cooperation and social exchanges.

Body Language

Non-verbal communication through physical behaviors, such as gestures, postures, and facial expressions, which convey messages or emotions.

Widely Shared Expectations

Norms or beliefs that are commonly held and anticipated by a large number of people within a society or group.