The Table Below Shows the Full-Employment Budget Surplus as a Percentage

question 36

Multiple Choice

The table below shows the full-employment budget surplus as a percentage of GDP over a five-year period. Refer to the above information. In which year was fiscal policy contractionary?

• A) Year 2
• B) Year 3
• C) Year 4
• D) Year 5

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Definitions:

Breach of Contract

occurs when one party fails to fulfill its obligations under the contract without a legitimate legal excuse, thereby violating the agreement.

Commercial Units

Standardized units or quantities of goods that are considered acceptable by all parties in a commercial transaction for the purpose of sale or lease.

Conforming

Adhering to or complying with a set standard, rule, or norm.

Non-conforming

Refers to a property or product that does not meet local zoning or building standards.