Figure 20-7 -In Figure 20-7, There Are Three Aggregate Expenditure Functions (C

question 199

Multiple Choice

Figure 20-7

-In Figure 20-7, there are three aggregate expenditure functions (C + I + G + X − IM) for an open economy.Which of the following would cause a movement from C to B?

• A)a European economic expansion
• B)an appreciation of the dollar
• C)a depreciation of the dollar
• D)an increase in the money supply

---

Definitions:

Social Loafing

The behavior of individuals demonstrating decreased effort in goal achievement while in a group setting versus when working independently.

Ringelmann Effect

Describes the tendency for individual members of a group to become increasingly less productive as the size of the group increases.

TAT

The thematic apperception test, a projective psychological test used to reveal a person's social drives or needs by their interpretation of a series of pictures of emotionally ambiguous situations.

Social Loafing

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