If You Are Using the Misattribution of Arousal Principle to Plan

question 131

Multiple Choice

If you are using the misattribution of arousal principle to plan a first date and you really want your partner to be attracted to you, which of the following activities would you choose?

• A) ride the rollercoasters at an amusement park
• B) get tickets to see a slow-moving art film
• C) go out for coffee and make sure your date orders decaf
• D) have a nice meal and wine at a quiet, dimly lit restaurant

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Definitions:

Full Employment GDP

The maximum level of production an economy can sustain while keeping unemployment at its natural or non-accelerating inflation rate of unemployment (NAIRU).

Multiplier

In economics, a factor by which a change in spending results in an amplified change in national income and output.

Inflationary Gap

The difference between the actual output of an economy and the output it would produce without inflation, indicating an overheated economy.

Recessionary Gap

A situation where the real GDP is lower than the potential GDP at full employment, indicating underutilized resources.