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The __________ Fallacy Is a Phenomenon That Causes People to Believe

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The __________ fallacy is a phenomenon that causes people to believe that additional information increase the probability that a statement is true,even though that probability actually decreased.


Definitions:

Recession

A period of temporary economic decline during which trade and industrial activity are reduced.

Purchasing Power

Purchasing power denotes the value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.

Real Income

Income adjusted for inflation, reflecting the actual purchasing power of money received.

Consumer Price Index

The Consumer Price Index (CPI) measures changes in the price level of a market basket of consumer goods and services purchased by households.

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