FIGURE 29-2 Refer to Figure 29-2

question 110

Multiple Choice

FIGURE 29-2 Refer to Figure 29-2.The movement of the economy from E₀ to E₁ was likely caused by a

• A)positive demand shock associated with increased investment.
• B)negative demand shock due to government cut-backs.
• C)negative supply shock due to a rise in input prices.
• D)positive supply shock induced by developments of new technology.
• E)positive supply shock caused by lower nominal wages.

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Definitions:

Hindsight Bias

The tendency to believe, after an event has occurred, that one would have predicted or expected the outcome, even though it was not foreseeable.

Explicit Prejudice

Negative attitudes or beliefs that are consciously held and openly expressed towards a group or individual based on characteristics such as race, gender, or ethnicity.

Implicit Prejudice

An unconscious bias or attitude towards a person or group that influences behavior or perceptions without explicit awareness.

Scapegoating

The practice of singling out one person or group for unmerited blame or negative outcomes.