The phrase 'demonstration effect' was coined by:

Correct option is A

Correct answer : (a) James Duesenberry

​Explanation: 

• The phrase 'demonstration effect' was coined by James Duesenberry, an American economist.
• This concept is a part of his work on consumer behavior, particularly in his book "Income, Saving, and the Theory of Consumer Behavior" (1949).

Information Booster: 

• The demonstration effect refers to the idea that individuals’ consumption choices are influenced by observing the consumption behaviors of others, particularly those of a higher social or economic status.
• It suggests that people tend to compare their consumption levels with others, leading to changes in their own spending patterns.

Additional Knowledge: ​

• Adam Smith:
  • He was known as the "Father of Economics," is most famous for his work The Wealth of Nations (1776), where he laid the foundation for classical economics.
  • His economic theory revolves around the concept of the "invisible hand," which suggests that individuals pursuing their self-interest unintentionally promote the public good through the production and exchange of goods in competitive markets.
  • His ideas on laissez-faire economics influenced future economic policies and the development of capitalism.
• John Maynard Keynes:
  • He was a British economist who revolutionized economic thought with his book The General Theory of Employment, Interest, and Money (1936).
  • He argued that during economic recessions, private demand often falls short, leading to unemployment.
  • To counter this, he advocated for government intervention, such as increased public spending and lower taxes, to stimulate demand and economic growth.
    
• Joan Robinson's growth model: 
  • It was known as the Cambridge Growth Model, emphasizes the role of capital accumulation and investment in driving economic growth.
  • It highlights how income distribution between wages and profits influences savings, consumption, and overall demand.
  • Robinson also stressed the importance of effective demand for sustaining growth and argued that technological progress and capital investment are key to increasing productivity.​