The Decision-Making Process That Involves Making a Decision on the Basis

question 42

Multiple Choice

The decision-making process that involves making a decision on the basis of certain features that are similar to a stereotyped model is called ________.

• A) compensatory decision modeling
• B) hill-climbing
• C) the availability heuristic
• D) the representativeness heuristic

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Definitions:

Long-Run Phillips Curve

A graph showing that, in the long term, there is no trade-off between inflation and unemployment, suggesting the relationship is vertical.

Long-Run Aggregate Supply

The total output of goods and services that an economy can produce when it is using all of its resources efficiently and at full employment.

Vertical

In economics, this term typically refers to a market structure where companies provide different, but related, products or services at various stages of production.

Money Supply

The total financial resources in an economy at a particular time, made up of cash, coins, and the holdings in checking and savings accounts.