The Conventional View Among Economists Is That Persistent Budget ________

question 16

Multiple Choice

The conventional view among economists is that persistent budget ________ lead to a lower level of potential GDP in the ________ run.

• A) surpluses; short and long
• B) surpluses; short
• C) deficits; short
• D) deficits; long

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Definitions:

Prejudice

Negative feelings, opinions, and beliefs associated with a stereotype.

Fundamental Attribution Error

A common cognitive bias where an individual tends to attribute others' behaviors to their character or personality while underestimating situational factors.

Actor/Observer Bias

The tendency to attribute one's own actions to external causes while attributing others' actions to their personality.

Self-Fulfilling Prophecy

A situation where an individual's expectations or the expectations of others lead to behaviors that cause those expectations to come true.