Which of the Following Is True of Aggregate Supply in the Long

question 142

Multiple Choice

Which of the following is true of aggregate supply in the long run?

• A)Nominal wages and output prices are both fixed.
• B)Nominal wages are fixed but output prices can vary.
• C)Output prices are fixed.
• D)Nominal wages are fully responsive to changes in the price level.

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Definitions:

Behavior-Reinforcer Belief

The idea that a specific behavior can be made more frequent by following it with a reinforcing (positive or negative) stimulus.

Rewards

Positive reinforcements or incentives provided to encourage a particular behavior or action.

Path

A course of action or sequence of events proposed or taken as leading to a particular outcome or goal.

Entorhinal Cortex

The section of the medial temporal lobe containing grid cells that respond to very specific locations in the physical environment.