If the Economy Is in Equilibrium, It Must Be

question 57

Multiple Choice

If the economy is in equilibrium, it must be

• A)on the 45° line.
• B)on the 60° line.
• C)below the 45° line.
• D)below the 60° line.

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Definitions:

Functional Fixedness

A mental shortcut that restricts an individual to employing an item solely in its conventional manner, obstructing innovative thinking and the ability to solve problems.

Availability Heuristic

A cognitive bias where people judge the likelihood of events based on how easily examples come to mind.

Elimination-by-aspects Strategy

A decision-making process where choices are sequentially eliminated based on whether they fail to meet certain criteria.

Alternate Outcomes Analysis

A decision-making process that involves considering different possible outcomes to evaluate the effectiveness of decisions.