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Why Does Aggregate Demand Shift Outward by a Greater Amount

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Why does aggregate demand shift outward by a greater amount than the initial change in spending?

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Definitions:

Amoral Managers

Managers who lack a clear sense of ethical considerations in their decision-making, focusing more on legal compliance or profit maximization without regard to moral implications.

Ethical Implications

The consideration of the moral consequences and responsibilities linked to a decision, action, or policy.

Personal Values

Core beliefs or ideals that guide an individual's behaviors, decisions, and lifestyle choices.

Managerial Decision Making

The process by which managers make choices among alternative strategies or actions to solve problems or capitalize on opportunities.

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