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Why doesn't stabilization policy work,according to economists using the misperceptions theory?
Imbalance
A state of lack of equilibrium or proportion, in physical contexts, emotional states, or relationships.
Self-Handicapping
A strategy where individuals create obstacles to their own success to protect self-esteem in case of failure.
Elaboration Likelihood Model
A theory in social psychology that explains different ways of processing stimuli, why they are used, and their outcomes on attitude change.
Dissonance Theory
A theory that suggests people are motivated to reduce the discomfort (dissonance) caused by inconsistencies between their beliefs and their actions.
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