The Circular Flow Shows That GDP Measures

question 144

Multiple Choice

The circular flow shows that GDP measures
I.total income.
Ii.total expenditures.
Iii.price changes.

• A)i only
• B)ii only
• C)iii only
• D)i and ii
• E)i,ii,and iii

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Definitions:

Dichotomy

A division or contrast between two things that are presented as entirely different or opposite.

All-Or-None Thinking

A cognitive distortion involving viewing situations in only two categories instead of on a continuum, such as completely right or completely wrong.

Arbitrary Inference

Arbitrary inference is a cognitive distortion where an individual makes a conclusion without supporting evidence or even in the face of contrary evidence.

Negative Bias

The tendency to focus more on negative information or experiences than positive ones.