Most Economists See the Business Cycle

question 56

Multiple Choice

Most economists see the business cycle

• A) as a regular pattern of recessions and expansions of the same length and intensity.
• B) occurring as a result of anticipated macroeconomic changes in the marketplace.
• C) as randomly occurring, resulting from unpredictable long-run changes in the macroeconomy.
• D) as resulting from the response of households and firms to macroeconomic shocks.

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Definitions:

Hostile Attribution Bias

Tendency to perceive others as trying to hurt one and to strike out in retaliation or self-defense.

Retaliation

The act of returning an injury or wrong received from another, often seen as a form of retribution or revenge.

Aggression Bias

The tendency to perceive actions or intentions as more aggressive than they may actually be, often influenced by stereotypes or prior experiences.

Unusually Strong Need

An atypical, intense requirement or desire for something, often leading to specific behaviors or actions to fulfill that need.