In the Great Recession of 2007-2009, the Aggregate Expenditures Schedule

question 50

Multiple Choice

In the Great Recession of 2007-2009, the aggregate expenditures schedule in the U.S. economy dropped, mostly due to a fall in:

• A) Consumption spending
• B) Investment expenditures
• C) Government spending
• D) Net exports

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Definitions:

Recency Effect

The phenomenon where more recently presented information is better remembered and has a stronger influence on judgment than older information.

Transference

In psychotherapy, the phenomenon where patients project feelings or attitudes from past relationships onto the therapist.

Halo Effect

A cognitive bias where the perception of one positive trait leads to the assumption of other positive traits in an individual.

Upward Counterfactual

Thinking about how a situation could have turned out better, often leading to feelings of regret.