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The Diagram Below Shows an AD/AS Model for a Hypothetical

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The diagram below shows an AD/AS model for a hypothetical economy.The economy begins in long-run equilibrium at point A. The diagram below shows an AD/AS model for a hypothetical economy.The economy begins in long-run equilibrium at point A.   FIGURE 24-4 Refer to Figure 24-4.The positive aggregate supply shock shown in the diagram results in a new short-run equilibrium where the price level is ________ and real GDP is ________. A) 60; 1000 B) 60; 1300 C) 90; 750 D) 90; 1200 E) 110; 1300 FIGURE 24-4 Refer to Figure 24-4.The positive aggregate supply shock shown in the diagram results in a new short-run equilibrium where the price level is ________ and real GDP is ________.


Definitions:

Fundamental Attribution Error

The tendency to overemphasize personality-based explanations for behaviors observed in others while underestimating the influence of situational factors.

Self-serving Bias

A common tendency to attribute one's successes to personal characteristics and failures to external factors.

Just-world Hypothesis

The cognitive bias that assumes that actions always yield morally fair and fitting consequences, essentially that the world is just.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.

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