Which of the Following Disadvantages of Group Decisions Typically Results

question 61

Multiple Choice

Which of the following disadvantages of group decisions typically results from the group being very cohesive?

• A)Irrationality
• B)Groupthink
• C)Compromise
• D)Dominance
• E)Coalitions

---

Definitions:

Aggregate Expenditure

Represents the total spending on goods and services in an economy, including consumption, investment, government purchases, and net exports during a specific period.

Autonomous Investment

Investment in an economy that does not depend on the current level of income or production, often driven by innovation or governmental policy.

Aggregate Expenditure

The total amount of spending in the economy that includes consumption, investment, government purchases, and net exports.

Simple Spending Multiplier

The ratio of a change in real GDP demanded to the initial change in spending that brought it about; the numerical value of the simple spending multiplier is 1/(1 + MPC); called “simple” because only consumption varies with income.