According to Keynesians

question 56

Multiple Choice

According to Keynesians,

• A)an increase in aggregate demand will lead to a higher average price level.
• B)an increase in aggregate demand will eventually lead to a higher average price level.
• C)an increase in aggregate demand will eventually lead to less real GDP.
• D)None of the choices are true of Keynesians.

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Definitions:

Risky-Shift

A phenomenon where a group collectively decides on a course of action that is more extreme than they would have made individually.

Deindividuation

A state of reduced individuality, reduced self-awareness, and reduced attention to personal standards; this phenomenon may occur when people are part of a group.

Groupthink

A psychological phenomenon where a group's desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Social Loafing

The tendency for people to work less hard in a group than when working alone.