In Response to the Financial Crisis Which Followed the Housing

question 51

Multiple Choice

In response to the financial crisis which followed the housing bubble collapse, policy-makers feared stimulating demand would cause:

• A) high inflation despite low economic growth and high unemployment.
• B) high inflation despite high economic growth and low unemployment.
• C) low economic growth despite low inflation and low unemployment.
• D) high unemployment despite low inflation and low economic growth.

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Definitions:

Ego Depletion

The idea that ego strength becomes depleted by extended bouts of self-control.

Implementation Intention

A strategy for goal setting that involves forming a specific plan about when, where, and how to act in order to achieve an objective.

Emotional Processes

The mechanisms through which emotions are experienced, expressed, regulated, and understood.

Affective Forecasting

Predicting one’s emotional reactions to potential future events. These predictions are often inaccurate.