In the Short Run, a Decrease in the Price of a Major

question 155

Multiple Choice

In the short run, a decrease in the price of a major input such as oil will:

• A) decrease the price level and increase the level of output.
• B) increase the price level and increase the level of output.
• C) decrease both the price level and the level of output.
• D) increase the price level and decrease the level of output.

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Definitions:

Long-Term Memory

The aspect of memory in which information is stored for an extended period, potentially for a lifetime.

Cognitive System

A complex system in the brain responsible for thought, memory, learning, and perception.

Adaptation

The process of adjusting to changes in the environment, or a modification made to something to adjust to a new use or condition.

Attention Gains

Improvements in the ability to selectively concentrate on specific information while ignoring other distractions.