Consider the Economy's Aggregate Supply Curve

question 8

Multiple Choice

Consider the economy's aggregate supply curve.Other things being equal,firms' unit costs will tend to fall if

• A)there is a rise in the price of oil.
• B)the government increases payroll taxes.
• C)wages fall.
• D)wage and price controls are in effect.
• E)wage increases are less than productivity increases.

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after being associated with an unconditioned stimulus, elicits a conditioned response.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally triggers a response without any prior learning.

Conditioning

A technique where behavior change is achieved by making a subject associate a preferred behavior with an unrelated stimulus before the process.

Animal Models

Non-human species used in research to understand biological processes and diseases, simulating conditions comparable to human biology.