The President Wishes Not Only to Increase Spending for Education

question 156

Multiple Choice

The president wishes not only to increase spending for education by $4 billion but also to maintain a balanced budget.Therefore, taxes will also be increased by $4 billion.What will happen to GDP?

• A)It will increase.
• B)It will remain the same.
• C)It will decrease.
• D)It's impossible to know without the multiplier.

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Definitions:

Lack-of-participation Error

Describes a situation where the absence of employee involvement in decision-making leads to decreased morale, motivation, and potentially suboptimal outcomes.

Confirmation Error

A bias in decision-making where individuals favor information that confirms their pre-existing beliefs or hypotheses.

Confirmation Error

A cognitive bias that involves favoring information that confirms pre-existing beliefs or values, while disregarding evidence that contradicts them.

Escalating Commitment

The phenomenon where people increase their investment in a decision despite new evidence suggesting that the decision was wrong.