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:

Conditioned Stimulus

A previously neutral stimulus that, after being paired with an unconditioned stimulus, elicits a conditioned response.

Guthrie

A psychologist recognized for positing that learning occurs through a pattern of stimulus and response actions, Guthrie emphasized the importance of the immediate physical context in learning.

Suppressed Behavior

Actions or reactions that are deliberately held back, restrained, or controlled.