An Increase in Consumer Pessimism Will Lead to Increased Inflation

question 75

Multiple Choice

An increase in consumer pessimism will lead to increased inflation in:

• A) the short run only.
• B) the long run only.
• C) both the short run and the long run.
• D) neither the short run nor the long run.

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Definitions:

Correlational

Pertaining to a statistical relationship between two or more variables, indicating how one may predict the other without implying causation.

Overt Behavior

Actions or responses that are observable and measurable by others, as opposed to thoughts or feelings which are internal and subjective.

Daydreaming

A state of mind involving spontaneous and self-generated thoughts and imaginations, disconnected from immediate external tasks.

Clinical Psychology

A branch of psychology concerned with diagnosing and treating mental, emotional, and behavioral disorders.