-The Data in the Above Table Indicate That When the |

question 243

Multiple Choice

$$\begin{array} { | l | l | l | l | } \hline \begin{array} { l } \text { Price } \\\text { level }\end{array} & \begin{array} { l } \text { A ggregate } \\\text { demand } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} & \begin{array} { l } \text { Short-run } \\\text { aggregate } \\\text { supply } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} & \begin{array} { l } \text { Long-run } \\\text { aggregate } \\\text { supply } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} \\\hline 130 & 8 & 12 & 10 \\\hline 120 & 9 & 11 & 10 \\\hline 110 & 10 & 10 & 10 \\\hline 100 & 11 & 9 & 10 \\\hline 90 & 12 & 8 & 10 \\\hline\end{array}$$
-The data in the above table indicate that when the price level is 100,

• A) inventories fall and the price level rises.
• B) inventories rise and the price level falls.
• C) the economy is in a long-run macroeconomic equilibrium.
• D) the unemployment rate is at its equilibrium level.

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Definitions:

Conditioning

A process by which a response becomes more likely to occur or more strongly associated with a stimulus as a result of reinforcement.

Pavlov

Refers to Ivan Pavlov, a Russian physiologist known for his work on classical conditioning, particularly his experiments with dogs that led to an understanding of how reflexes can be conditioned.

Instinctive Drift

The tendency of an animal to revert to instinctual behaviors that interfere with learned behavior from conditioning.

Negative Reinforcement

A process in behaviorism where a response increases because a negative condition is stopped or avoided as a consequence of the response.