Confirmation Bias Is the Propensity to Over-Rely on Information Recollected

question 15

True/False

Confirmation bias is the propensity to over-rely on information recollected from memory when making a decision.

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Definitions:

Equilibrium

A condition where the supply and demand in the market are in equilibrium, leading to stable prices.

Full Employment

A situation in an economy where all individuals who are willing and able to work at current wage levels are employed, with minimal levels of unemployment.

Keynes

John Maynard Keynes was a British economist whose ideas fundamentally affected the theory and practice of modern macroeconomics and the economic policies of governments.

Aggregate Demand

Aggregate demand represents the total sum of demand for all products and services in an economy, measured at a specific price level and during a particular time frame.