In the Model with Sticky Prices, in the Short Run

question 11

Multiple Choice

In the model with sticky prices, in the short run a positive monetary shock leads to:

• A)an increase in household real money balances.
• B)an increase in household's demand for goods.
• C)no change in household's desired real money balances.
• D)all of the above.

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Definitions:

Social Loafing

The dynamic wherein teamwork leads to a decrease in individual effort applied towards achieving objectives, in contrast to independent work.

Groupthink

A psychological phenomenon in which people striving for consensus within a group fail to consider alternatives, leading to a dysfunctional decision-making outcome.

Social Facilitation

The tendency for people to perform differently, usually better, when in the presence of others than when alone.

Social Loafing

Social loafing is the phenomenon observed when individuals exert less effort to achieve a goal when they work in a group than when they work alone.