When peoples' memories and judgments change with their moods it is referred to as

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Mood infusion refers to the phenomenon where people's current mood influences their judgments and memories, often causing them to be more positive or negative than they would be in a neutral mood. Illusory thinking refers to the tendency to perceive images or patterns that are not actually present. Counterfactual thinking refers to the tendency to imagine alternative outcomes to past events. Heuristics are mental shortcuts that people use to make judgments or decisions quickly, often relying on incomplete information or assumptions.

When Peoples' Memories and Judgments Change with Their Moods It