Counterfactual Thinking Refers to the Tendency to View Outcomes as Inevitable

question 132

True/False

Counterfactual thinking refers to the tendency to view outcomes as inevitable and predictable after we know the outcome, and to believe that we could have predicted what happened.

---

Definitions:

National Debt

The sum total of finances that a nation's government has amassed in debt via various avenues.

Deficit

An economic condition where expenditures exceed revenue, common in government budgets.

Surplus

A situation where the quantity supplied of a good or service exceeds the quantity demanded at the current price.

Deflationary Gap

A situation where total spending (aggregate demand) in an economy is lower than the level required to sustain full employment output, leading to deflation and unemployment.