Which of the Following Could Cause the Economy's AS Curve

question 13

Multiple Choice

Which of the following could cause the economy's AS curve to shift upward in the short run?

• A)an increase in the cost of capital
• B)a decrease in the cost of capital
• C)a decrease in nominal wages
• D)a decrease in the price level
• E)an improvement in technology

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Definitions:

Conditioning

The process of learning associations between environmental stimuli and behavioral responses, often distinguished as classical or operant conditioning.

Cognitive Components

The aspects of thinking and understanding, including perception, memory, judgment, and reasoning.

B.F. Skinner

An American psychologist and behaviorist who developed the theory of operant conditioning, emphasizing the consequences of behavior in shaping future actions.

Ivan Pavlov

A Russian physiologist known for his work in classical conditioning, particularly his experiments with dogs and salivation.