The Core of Groupthink Involves

question 206

Multiple Choice

The core of groupthink involves

• A)misguided loyalty, in which group members are hesitant to "rock the boat" or question sloppy thinking.
• B)the halo effect, in which group members tend not to question the ideas of the physically attractive.
• C)the fundamental attribution error, in which there is a tendency of the group members to look to external causes.
• D)cognitive dissonance, in which there is an uncomfortable clash between ideas and behaviors within a group.

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Definitions:

Expected Inflation

Expected inflation is the rate at which the general price level of goods and services is anticipated to rise over a specific period.

Unemployment Rate

The percentage of the total labor force that is unemployed but actively seeking employment and willing to work.

Friedman-Phelps

An economic theory associated with Milton Friedman and Edmund Phelps, focusing on the natural rate of unemployment and the relationship between inflation and unemployment.

Actual Inflation

The real rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.