Why Do Small Differences in Economic Growth Rates Today Result

question 49

Multiple Choice

Why do small differences in economic growth rates today result in significant differences in the level of economic activity in the future?

• A)Growth rates discount over time
• B)Economic growth compounds year after year
• C)Economics grow in an arithmetic fashion
• D)Business cycles are less likely at higher rates of growth
• E)All of the above

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Definitions:

Hostile Attribution Bias

The tendency to interpret others' behaviors as having hostile intent, even when the behavior is ambiguous or benign.

Disagreeable

Refers to a personality trait characterized by a tendency to be unfriendly, uncooperative, and hostile towards others.

Personality Traits

Describes the consistent patterns of thoughts, emotions, and behaviors that distinguish individuals from one another.

Big Five

The Big Five personality traits are a widely endorsed model that consists of openness, conscientiousness, extraversion, agreeableness, and neuroticism.