Which of the Following Correctly Describes the Automatic Mechanism Through

question 138

Multiple Choice

Which of the following correctly describes the automatic mechanism through which the economy adjusts to long-run equilibrium?

• A)the leftward shift of the short-run aggregate supply curve that occurs after a recession
• B)the rightward shift of the short-run aggregate supply curve that occurs after a recession
• C)the leftward shift of the aggregate demand curve that occurs after a recession
• D)the rightward shift of the aggregate demand curve that occurs during a recession

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Definitions:

False Consensus Effect

The tendency to overestimate the number of other people who share one’s opinions, attitudes, values, and beliefs.

Illusion Of Control

The false belief that one can influence certain events, especially random or chance ones.

Fundamental Attribution Error

A cognitive bias that causes people to overemphasize personal characteristics and ignore situational factors in explaining others' behavior.

Availability Heuristic

A cognitive bias where individuals rely on immediate examples that come to mind when evaluating a specific topic, concept, method, or decision.