Cedric runs out of gas on the way to work. he thinks to himself—"how stupid i am! " cedric has experienced a form of a problem recognition that is being dominated by a downward movement in his actual state.

I'm not sure what you're asking mate-- you stated a true fact.  So if you're asking true/false, then your answer would be very much true.  Cedric HAS just experienced a form of a problem recognition that is being dominated by a downward movement in his actual state.