By Itself, an Increase in Aggregate Demand Increases GDP by the Least

question 274

Multiple Choice

By itself, an increase in aggregate demand increases GDP by the least amount in the_________ .

• A) Keynesian theory
• B) real business cycle theory
• C) new Keynesian theory
• D) monetarist theory

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Definitions:

Dispositional Attribution

The tendency to attribute someone's behavior to their personality, character, or disposition.

Situational Attribution

The process of assigning the cause of behavior to external factors, circumstances, or the environment.

Scapegoats

Individuals or groups blamed for wrongs that they haven't committed, often as a way of deflecting blame from the true culprits.

Least Power

A principle suggesting that in a social relationship, the person who cares the least has the most power.