Which of the Following Reflects a Coordination Problem in Aggregate

question 58

Multiple Choice

Which of the following reflects a coordination problem in aggregate demand?

• A)Congress approves increases in government spending that are insufficient to stimulate aggregate demand.
• B)Congress wants to maintain balanced budgets during a recession rather than running budget deficits.
• C)Congress increases spending in areas that are already at or near full-employment.
• D)Automatic stabilizers shift the budget toward a surplus during an expansion and a deficit during a recession without Congressional action.

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Definitions:

Volitional Control

The capacity to make decisions and execute actions based on one's own will, often in the context of self-regulation or behavioral choices.

Theory of Planned Behavior

A psychological theory that predicts an individual's intention to engage in a behavior at a specific time and place. It considers attitudes, subjective norms, and perceived behavioral control as key factors.

Amount of Influence

The degree or extent to which one individual or group can sway or alter the actions, beliefs, or attitudes of another.

Modify Past Behavior

The act of changing or altering one's previous actions or habits, typically motivated by the desire for improvement or as a response to new information or experiences.