A Time of Declining Economic Activity When Businesses Decrease Production

question 117

Multiple Choice

A time of declining economic activity when businesses decrease production, unemployment rises, and many consumers have less money to spend is referred to as

• A) deflation.
• B) inflation.
• C) prosperity.
• D) a recession.
• E) an economic cycle.

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Definitions:

Quick Decisions

Rapid choices or judgments made with minimal deliberation, often relying on intuition or instinct.

Simple Heuristics

Quick, efficient rules or mental shortcuts that help in decision-making, allowing for rapid judgments or problem-solving with minimal cognitive effort.

Evolutionary Psychologists

Scientists who study the psychological adaptations of humans to the changing physical and social environment, especially those that are shaped by natural selection.

Low Maintenance

Describing something or someone that requires minimal care, effort, or attention to maintain.