Related to the Economics in Practice on P

question 37

Multiple Choice

Related to the Economics in Practice on p. 227: In the simple "Keynesian" view, if planned aggregate expenditure and aggregate demand exceed capacity output, there is

• A) an inflationary gap and price level rises.
• B) an inflationary gap and price level falls.
• C) a recessionary gap and price level rises.
• D) a recessionary gap and price level falls.

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Definitions:

Social Dominance Theory

A theory suggesting that societies are structured in hierarchical group systems, with inequalities maintained through mechanisms such as discrimination and systems of oppression.

Status Position

The rank or standing of an individual or group within a societal or organizational hierarchy.

Group Cohesion

A property of a group, specifically the degree to which members of a group desire to remain in that group and resist leaving it. A highly cohesive group will maintain a firm hold over its members’ time, energy, loyalty, and commitment.

Task Cohesion

Task cohesion refers to the level of unity and commitment among members of a group or team towards achieving a common goal.