John Is Using Fast, Intuitive Processing to Judge the Likelihood

question 123

Multiple Choice

John is using fast, intuitive processing to judge the likelihood that he will do well on a test. John's thinking is characteristic of _____ processing, which is _____.

• A) System 1; more reliable than System 2
• B) System 1; less reliable than System 2
• C) System 2; more reliable than System 1
• D) System 2; less reliable than System 1

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Definitions:

Demand Shock

A sudden event that increases or decreases demand for goods or services in an economy, often leading to changes in prices and output.

Expansion Phase

A period in the business cycle when the economy moves from a trough to a peak, characterized by an increase in economic activity, production, and employment.

Prosperity

A state of economic well-being characterized by financial success, growth, and good fortune, where living conditions and quality of life are improved.

Unanticipated Inflation

Inflation that occurs when people do not expect it, often leading to disruptions in economic planning and contracts.