I think human nature is such that some people would actually believe the Emperor was clothed (and be very difficult to convince otherwise).
Others will agree with whatever they think will give them some kind of advantage - prestige, promotion, etc.
Most of the rest will then go with the flow - either due to peer pressure, or just following the latest fashion.

That only leaves a few ragged individualists and the fringe ratbags. Unfortunately the bureaucratically minded are not good at seperating the two, and usually throw out the baby with the bathwater (or keep the bathwater and throw out the baby).