A Counterclockwise Loop Spiraling Downward in the SP/LP Diagram Is

question 19

Multiple Choice

A counterclockwise loop spiraling downward in the SP/LP diagram is the dynamic process typical of ________ policy with inflationary expectations that ________ adjust.

• A)inflationary,are slow to
• B)inflationary,instantly
• C)disinflationary,are slow to
• D)disinflationary,instantly

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Definitions:

Fundamental Attribution Error

In explaining other people’s behavior, the tendency to overemphasize personality traits and underestimate situations.

Actor/Observer Bias

is the tendency to attribute one's own actions to external causes while attributing other people's behaviors to internal causes.

Self-Fulfilling Prophecy

People’s tendency to behave in ways that confirm their own expectations or other people’s expectations.

Ingroup/Outgroup Bias

The tendency to favor and extend loyalty to members of one's own group (the ingroup) while discriminating against members of other groups (the outgroup).