According to Classical Macroeconomic Theory,in the Long Run

question 68

Multiple Choice

According to classical macroeconomic theory,in the long run

• A)monetary growth affects both real and nominal variables.
• B)the only real variable affected by monetary growth is the unemployment rate.
• C)a number of factors that affect unemployment are influenced by monetary growth.
• D)monetary growth affects nominal but not real variables.

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Definitions:

False Uniqueness

The erroneous belief that one's abilities, thoughts, or characteristics are more unique or exceptional than they actually are, often underestimating commonality with others.

External Attribution

The process of assigning the cause of one's own or others' behaviors to external factors or circumstances beyond the individual's control.

Illusory Correlation

The phenomenon of perceiving a relationship between variables (typically people, events, or behaviors) even when no such relationship exists.

False Uniqueness Effect

Refers to an individual's tendency to underestimate the commonality of one's abilities and one's desirable or successful behaviors.