If Situation D Is P = (3, 1)and X =

question 2

Multiple Choice

if situation D is p = (3, 1) and x = (5, 10) ,

• A)Ronald's behavior is consistent with both the Weak and the Strong Axioms of Revealed Preference.
• B)Ronald's behavior is consistent with the Weak but not the Strong Axiom of Revealed Preference.
• C)Ronald's behavior violates both the Weak and the Strong Axioms of Revealed Preference.

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Definitions:

Countercyclical

An economic or fiscal policy or measure that moves in opposition to the business cycle, designed to reduce the volatility of the economic cycle by decreasing spending in booms and increasing it in recessions.

Built-In Stabilizers

Economic policies and programs designed to automatically reduce volatility in the economy without the need for specific action by policymakers.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced in a country in real terms.

Federal Budget

An annual financial statement presented by the government, detailing its expected revenue and proposed spending for the coming fiscal year.