Examlex
According to the misperceptions theory,when P < Pᵉ,output is ________ its full-employment level and the short-run aggregate supply curve must shift to the ________ to restore full employment.
Anchoring
Overestimation of the importance of a factor by focusing on it to the exclusion of other relevant factors.
Framing
The way information is presented so as to emphasize either a potential gain or a potential loss as the outcome.
Representativeness Heuristic
is a cognitive shortcut where the likelihood of an object belonging to a category is assessed based on its similarity to a typical case from that category.
Heuristics
Mental shortcuts or rules of thumb that ease the cognitive load of making a decision, often leading to approximation or educated guesses.
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