Figure 28-9 -Refer to Figure 28-9. a Follower of the New Classical

question 232

Multiple Choice

Figure 28-9
-Refer to Figure 28-9. A follower of the new classical macroeconomics would argue that ________ like that pursued by Paul Volcker in 1979, would result in a movement from C to A.

• A) expansionary monetary policy
• B) contractionary monetary policy
• C) expansionary fiscal policy
• D) contractionary fiscal policy

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Definitions:

Group Polarization

In group decision making, the tendency for group members to shift their opinions toward a position that is similar to but more extreme than the positions they held prior to group discussion; both the risky shift and the cautious shift are instances of group polarization.

Risky Shift

In group decision making, the tendency for decisions made in groups after discussion to be riskier than decisions made by individual members prior to discussion.

Risk Avoidant

Characterizes individuals or strategies that prioritize minimizing potential losses or risks.

Justice Principle

The ethical concept that emphasizes fairness and the equitable treatment of individuals in decision-making processes and distribution of resources.