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Refer to Figure 18.4 for the following questions.
Figure 18.4
-Given that the economy has moved from A to B in Figure 18.4,which of the following would be the appropriate fiscal policy to achieve potential GDP?
Majority Influence
The effect that the larger group has on individuals causing them to conform or change their opinions to align with the group's.
Normative Pressure
The influence of societal norms and expectations on an individual's behavior.
Risky Shift
The phenomenon where groups tend to make riskier decisions compared to the decisions made by individuals.
Riskier Decisions
Refers to choices made under conditions of uncertainty that have a significant chance of leading to negative outcomes.
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