When the Price Level Rises from 110 to 115,the Aggregate

question 26

Multiple Choice

When the price level rises from 110 to 115,the aggregate level of GDP supplied rises from $80 billion to $120 billion.This ________ relationship represents the ________ relationship between the quantity of real GDP firms are willing to supply and the price level.

• A)negative; short-run
• B)positive; short-run
• C)negative; long-run
• D)positive; long-run

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Definitions:

Conditioned Response

A learned reaction to a specific stimulus that occurs after repeated exposure to that stimulus.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention; in conditioning, it becomes associated with an unconditioned stimulus.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without prior conditioning.

Internal Attributions

The tendency to explain one's own behavior and the behavior of others based on internal, character-based factors.