Figure 22-5 Use the Graph Below to Answer the Following Questions

question 72

Multiple Choice

Figure 22-5
Use the graph below to answer the following questions.
-Refer to Figure 22-5. If the economy starts at C and the money supply growth rate increases, in the long run the economy

• A)stays at C.
• B)moves to B.
• C)moves to F.
• D)None of the above is consistent wit an increase in the money supply growth rate.

---

Definitions:

Heuristics

Mental shortcuts or "rules of thumb" that simplify decision-making processes, often used unconsciously.

System I

A term from cognitive science referring to the fast, automatic, and often unconscious way of thinking, contrasted with slower, more deliberate thought.

Dual-Process Theory

The proposal that judgment involves two types of thinking: a fast, efficient, but sometimes faulty set of strategies, and a slower, more laborious, but less risky set of strategies.

System II

Often refers to a mode of thinking that is slower, more deliberative, and more logical than fast, automatic, intuitive responses (System I thinking).