Which of the Following Events Would Reduce Short-Run Aggregate Supply

question 148

Multiple Choice

Which of the following events would reduce short-run aggregate supply but not long-run aggregate supply?

• A) A major natural disaster results in the loss of life of 10% of the labor force.
• B) Government environmental regulations require the use of more expensive energy sources.
• C) The capital stock of a country rises by 10%.
• D) Concentration in the leading industries in a country falls.

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Definitions:

Observational Learning

A learning process through which behaviors, attitudes, or skills are acquired by watching and imitating the actions of others.

Classical Conditioning

A method of learning through which a response is cultivated by the combination of a stimulus found in the environment and one that naturally exists, leading to a behavioral response.

Fundamental Attribution Error

The tendency to overemphasize personality traits and underestimate situational factors when explaining others' behaviors.

Stable Global Attribution

A tendency to generalize the causes of behaviors and events as constant and widespread, influencing one's perspective on life and self-esteem.