The Short-Run Aggregate Supply Curve Is Upward Sloping for All

question 154

Multiple Choice

The short-run aggregate supply curve is upward sloping for all of the following reasons except:

• A)some firms adjust their markup in response to an increase in demand.
• B)some firms adjust their production in response to an increase in demand.
• C)some markets are posted-price markets.
• D)all inputs are fully utilized in the short run.

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Definitions:

Cue

A signal or stimulus that triggers a response or guides behavior in a particular direction.

Stimulus Discrimination

The ability to distinguish between similar stimuli and respond differently based on recognition of differences, significant in learning and decision-making processes.

Selective Comprehension

The cognitive process where an individual interprets information in a manner that aligns with their beliefs or knowledge, ignoring contradictory evidence.

Stimulus Generalization

The psychological phenomenon where a response conditioned to a specific stimulus also triggers similar responses to related stimuli.