Because of the Multiplier Effect, an Increase in Government Spending

question 131

True/False

Because of the multiplier effect, an increase in government spending of $200 billion will increase aggregate output by less than that amount.

---

Definitions:

Social Loafing

The phenomenon where individuals exert less effort to achieve a goal when they work in a group than when they work alone.

Ingroup Bias

The tendency to favor members of one's own group over those from external groups, often leading to prejudice and discrimination.

Individual Performance

Individual performance is the measure of how well a person accomplishes their tasks or goals in a specific context, such as work or sports.

Group Polarization

A tendency for group discussion to shift group members toward an extreme position.