In the Great Recession of 2007-2009, Consumption C and Investment

question 41

True/False

In the Great Recession of 2007-2009, consumption C and investment I_g fell while government G expanded.

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Definitions:

Illusion Of Control

The false belief that one can influence certain events, especially random or chance ones.

Fundamental Attribution Error

A cognitive bias that causes people to overemphasize personal characteristics and ignore situational factors in explaining others' behavior.

Availability Heuristic

A cognitive bias where individuals rely on immediate examples that come to mind when evaluating a specific topic, concept, method, or decision.

First Instinct Fallacy

The false belief that it is better not to change one’s first answer on a test even if one starts to think that a different answer is correct.