If Resource Prices Are "Sticky" Downward and a Recessionary Gap

question 116

Multiple Choice

If resource prices are "sticky" downward and a recessionary gap develops,the short-run aggregate supply curve will:

• A)shift leftward to return the economy to its potential output.
• B)shift rightward to return the economy to its potential output.
• C)become a horizontal straight line.
• D)not shift rightward to return the economy to its potential output.
• E)become the long-run aggregate supply curve.

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Definitions:

Nonverbal Behaviors

Refers to the ways in which people communicate, intentionally or unintentionally, without using verbal language, including through gestures, facial expressions, body language, and posture.

Explanatory Style

A psychological attribute that indicates how people explain to themselves their experiences, particularly the causes of events.

External Locus of Control

The belief that one's success or failure results from external forces beyond one's control.

Internal Locus of Control

The belief that one can control their own destiny and that outcomes are the result of individual actions rather than external forces.