In the Context of the Sticky-Price Model, the Higher the Average

question 66

Multiple Choice

In the context of the sticky-price model, the higher the average rate of inflation, the more frequently firms must adjust their prices, which implies that a high rate of inflation:

• A)has no effect on the slope of the short-run aggregate supply curve.
• B)should make the short-run aggregate supply curve flatter.
• C)makes the short-run aggregate supply curve steeper.
• D)causes prices to be sticky.

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Definitions:

Unconditioned Stimuli

A stimulus that naturally triggers a reflexive response without prior conditioning.

Primary Reinforcer

A stimulus that satisfies a basic biological need, such as food, water, or shelter, which is inherently rewarding.

Token Economy

A behavioral modification technique based on systematic reinforcement, using tokens as a form of currency that can be exchanged for desired rewards.

Shaping

The process of reinforcing successive approximations of a desired behavior to teach new behaviors.