According to the Misperceptions Theory,short-Lived Shocks May Have Long-Term Effects

question 83

Multiple Choice

According to the misperceptions theory,short-lived shocks may have long-term effects on the economy because of

• A)multiplier effects.
• B)propagation mechanisms.
• C)accelerator effects.
• D)automatic stabilizers.

---

Definitions:

Luck Of The Draw

An expression denoting the outcome of a situation determined purely by chance.

Dispositional Factors

These are inherent personality traits and characteristics that influence an individual's behavior and reactions to situations.

Situational Factors

External influences on an individual’s behavior or performance that are determined by the circumstances or environment.

Heider

Fritz Heider, an Austrian psychologist known for his work in attribution theory, focusing on how individuals infer the causes of behavior.