DeBondt and Thaler Found That the Winner/loser Effect Is Attributable

question 29

True/False

DeBondt and Thaler found that the winner/loser effect is attributable to investor overconfidence and biased self-attribution.

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Definitions:

Long-run Aggregate Supply

Long-run aggregate supply represents the total output an economy can produce when it is fully employing its resources, reflecting the economy’s potential growth rate without accelerating inflation.

Aggregate Supply

The aggregate amount of products and services that businesses within a country intend to offer for sale over a particular period.

Equilibrium Output

The level of output where the quantity demanded equals the quantity supplied in a market, leading to no pressure for change.

Price Level

A measure of the average prices of goods and services in an economy at a given time, often influencing inflation rates.