The Relationship Between Net Exports and GDP Makes the Slope

question 22

Multiple Choice

The relationship between net exports and GDP makes the slope of the aggregate expenditure curve

• A) steeper at low levels of GDP and flatter at high levels of GDP.
• B) neither flatter nor steeper than it would be otherwise.
• C) steeper than it would be otherwise.
• D) flatter than it would be otherwise.

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Definitions:

Groupthink

A psychological phenomenon occurring within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Shared Information Bias

A tendency in group decision-making processes to disproportionately discuss information that all members are already familiar with, rather than considering new or unknown information.

Cross-cueing

A mechanism where the presence of one stimulus or cue enhances the recognition or recall of another related cue.

Transactive Memory Systems

A shared system for encoding, storing, and retrieving information within a close-knit group, where members know who is responsible for certain types of information.