________ Would Decrease Short-Run Aggregate Supply

question 57

Multiple Choice

________ would decrease short-run aggregate supply.

• A) A negative supply shock
• B) Menu costs
• C) Money illusion
• D) A technological advance
• E) A lower than expected price level

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Definitions:

Social Psychologist

A scientist or researcher who studies how people's thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

Overconfidence

The state of being excessively confident, to the point of having an unrealistic perception of one's abilities or outcomes.

Hindsight Bias

The tendency to believe, after an event has occurred, that one would have predicted or expected the outcome, also known as the "knew-it-all-along" effect.

Confounding Variable

An external factor in a research study that correlates with both the dependent and independent variables, potentially skewing results.