Consider the Following Data That Identifies Real Gross Domestic Product

question 13

Multiple Choice

Consider the following data that identifies real gross domestic product GDP) in comparison to the long-run trend of real GDP to answer the next questions: $$\begin{array} { l l l } \hline \text { Quarter } & \begin{array} { l } \text { Real GDP } \\\text { (billions of dollars) }\end{array} & \begin{array} { l } \text { Long-Run Trend of Real } \\\text { GDP (billions of dollars) }\end{array} \\\hline 1 & 4,000 & 4,000 \\2 & 4,160 & 4,120 \\3 & 4,326 & 4,244 \\4 & 4,413 & 4,371 \\5 & 4,501 & 4,502 \\6 & 4,591 & 4,637 \\7 & 4,499 & 4,776 \\8 & 4,409 & 4,919 \\9 & 4,673 & 5,067 \\10 & 4,954 & 5,219 \\11 & 5,252 & 5,376 \\12 & 5,376 & 5,537 \\\hline\end{array}$$
-Between quarter 7 and quarter 8, real gross domestic product GDP) grew by what percentage?

• A) -2 percent
• B) 3 percent
• C) 1 percent
• D)6 percent
• E) 2 percent

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Definitions:

Cognitive Bias

A systematic pattern of deviation from norm or rationality in judgment, where individuals create their own "subjective reality" from their perception.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Satisficing

A decision-making strategy that entails searching through the available alternatives until an acceptability threshold is met, rather than seeking the optimal solution.

Problem Frame

A perspective or way of viewing and understanding a problem within a specific context, guiding problem-solving efforts.