The Crowding-Out Effect Tends to Be Stronger When the Economy

question 159

Multiple Choice

The crowding-out effect tends to be stronger when the economy

• A)has a lot of excess productive capacity.
• B)is at, or close to, full employment.
• C)has a very small net exports or foreign sector.
• D)is a very open economy with a large foreign sector.Topic: Problems, Criticisms, and Complications of Implementing Fiscal Policy

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Definitions:

Social Loafing

The phenomenon where individuals exert less effort when working in a group than when working alone.

Pooled Interdependence

A form of organizational interdependence where separate tasks or work units operate independently but contribute to a common output.

Team Cohesiveness

The extent to which team members are attracted to the team and motivated to stay in it, which influences group solidarity and productivity.

Team Size

Refers to the number of members within a group working towards a common goal, influencing the team's dynamics and performance.