In Which of the Following Situations for a Private Closed

question 117

Multiple Choice

In which of the following situations for a private closed economy will the level of GDP expand?

• A)when planned investment exceeds saving
• B)when planned investment exceeds consumption
• C)when saving exceeds consumption
• D)when consumption exceeds investment

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Definitions:

Just-world Hypothesis

The cognitive bias that assumes that actions always yield morally fair and fitting consequences, essentially that the world is just.

Groupthink

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

Symptoms

Signs or indications of a disease, disorder, or condition, often experienced by the individual affected.

Solomon Asch

A psychologist known for his research on conformity, including his famous experiment demonstrating how group pressure can influence an individual to conform.