The Inflation Adjustment Line Will Shift Down If There Is

question 140

Multiple Choice

The inflation adjustment line will shift down if there is

• A)an increase in energy prices.
• B)a decrease in potential GDP.
• C)an increase in the strength of expectations concerning a recession next year.
• D)an increase in real GDP.
• E)news of the auto industry meeting the wage demands of workers.

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Definitions:

Downward Social Comparison

A defensive tendency to compare oneself with someone whose troubles are more serious than one’s own.

Self-verification

The process through which individuals seek to confirm their self-concept by encouraging feedback that aligns with their existing beliefs and perceptions about themselves.

Biased Affective Forecasting

The tendency for people to inaccurately predict the intensity or duration of future emotional states, often underestimating the capacity to adapt to life changes.

Basking In Reflected Glory

The tendency to enhance one’s image by publicly announcing one’s association with those who are successful.