An Increase in Real GDP Shortly Before a Presidential Election

question 19

Multiple Choice

An increase in real GDP shortly before a presidential election could signal the start of

• A)a political business cycle.
• B)an economy-wide supply shock.
• C)a real business cycle.
• D)a permanent reduction in the inflation rate.
• E)long-term economic growth.

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Definitions:

Relative Homogeneity Effect

A perception bias where individuals see out-group members as more similar to each other than in-group members, often leading to stereotyping.

Heterogeneous

Consisting of elements or components that are different from each other; diverse in character or content.

Outgroups

Groups to which an individual does not belong, often perceived as different or alien compared to the individual's own group (ingroup).

Prototype

Cognitive representation of the typical/ideal defining features of a category.