If the Unexpected Short-Run Fluctuations in Demand Begin to Look

question 35

Multiple Choice

If the unexpected short-run fluctuations in demand begin to look permanent:

• A)the firms would allow their prices to change accordingly.
• B)the firms would be hesitant to allow their prices to change accordingly.
• C)the firms would not allow their prices to change.
• D)the firms would change the quality of their products but not the prices.

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Definitions:

Short-Term Memory

A type of memory that holds a small amount of information for a short period of time, usually 20-30 seconds.

Chunking

A memory strategy involving organizing or grouping separate pieces of information into a single unit, making it easier to remember.

Implicit Memory

A type of long-term memory that enables people to perform tasks without conscious awareness of the previous experiences influencing those actions.

Context-Dependent Memory

The phenomenon where people recall information better when the recall situation is similar to the encoding situation.