The Results of Alan Blinder"s Survey of Firms Suggest All

question 64

Multiple Choice

The results of Alan Blinder"s survey of firms suggest all of the following except that:

• A)there is only one theory of price stickiness.
• B)coordinating wage and price setting could improve welfare.
• C)reasons for price stickiness vary by industry.
• D)activist monetary policy can be used to cure recessions.

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Definitions:

Fundamental Attribution Error

A cognitive bias that involves overestimating the effect of personality or disposition and underestimating the effect of situational factors when interpreting the behaviors of others.

Defensive Attribution

A psychological process by which individuals tend to attribute more blame to victims and less to perpetrators when they see themselves as similar to the victim.

Behavioral Tendency

An inclination or predisposition of an individual to exhibit certain patterns of behavior.

Intuition

The ability to understand or know something immediately, without conscious reasoning.