Two Economists,Smith and Jones,are Discussing the Currently High Unemployment Rate

question 188

Multiple Choice

Two economists,Smith and Jones,are discussing the currently high unemployment rate.Smith says that something ought to be done quickly because the economy may not be able to restore itself to full employment.Jones says that it is better to take a "hands-off" approach.Which of the following is most likely to be true?

• A) Smith and Jones are most likely both Keynesian economists with a few minor differences of opinion.
• B) Smith and Jones are most likely both classical economists with a few minor differences of opinion.
• C) Jones is likely to be a Keynesian economist and Smith is likely to be a classical economist.
• D) Smith is likely to be a Keynesian economist and Jones is likely to be a classical economist.
• E) none of the above.

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Definitions:

Optimistic Bias Heuristic

A cognitive shortcut that leads individuals to believe that they are less likely to experience negative events compared to others.

Error

A mistake in reasoning, action, or calculation that may lead to incorrect conclusions or outcomes.

Judgment

The ability to make considered decisions or come to sensible conclusions based on a critical assessment of evidence and reasoning.

Satisficing Heuristic

A decision-making strategy that aims for a satisfactory or adequate result, rather than the optimal solution.