Other Things Constant, If the Cost of Labor Goes Down

question 150

Multiple Choice

Other things constant, if the cost of labor goes down, the profits of firms will

• A) increase, and short-run aggregate supply will shift to the right.
• B) fall, and short-run aggregate supply will shift to the left.
• C) increase, and long-run aggregate supply will shift to the right.
• D) fall, and long-run aggregate supply will shift to the left.

---

Definitions:

Conditioned Response

A learned response to a specific stimulus as a result of conditioning.

Trace Conditioning

A form of conditioning in which the conditioned stimulus (CS) and unconditioned stimulus (UCS) are presented separately with a time gap in between, requiring the organism to maintain a memory of the CS to elicit a response.

Delayed Conditioning

A classical conditioning paradigm where the conditioned stimulus is presented and continues until the unconditioned stimulus begins, resulting in learning the association between the two stimuli over time.

Backward Conditioning

A conditioning method where the conditioned stimulus is presented after the unconditioned stimulus, often leading to weaker learning.