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Why Did Observers at First Believe That the Damage from the Impending

question 39

Essay

Why did observers at first believe that the damage from the impending subprime mortgage crisis would be too small to cause a recession?


Definitions:

Effortful Processing

Encoding that requires attention and conscious effort.

Automatic Processing

The cognitive process that occurs without conscious effort, allowing us to perform tasks with little mental effort once we have mastered them.

Retrace Steps

The act of going back over a route or path taken previously, often to find lost items or to recall events.

Iconic Memory

A type of visual sensory memory that preserves an image of a visual stimulus for a brief period after the stimulus is removed.

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