The Short-Run Aggregate Supply Curve Is Upward Sloping Because

question 54

Multiple Choice

The short-run aggregate supply curve is upward sloping because

• A) a lower price level creates a wealth effect.
• B) lower taxes motivate people to work more.
• C) money wage rates do not immediately change when the price level changes.
• D) most business firms operate with long-term contracts for output but not labor.

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Definitions:

Partial Reinforcement

A conditioning schedule where responses are only occasionally reinforced, making the learned behavior more resistant to extinction.

Punishment

A concept in behavior psychology that involves the introduction of an unpleasant stimulus or the removal of a pleasant one following an undesired behavior, with the intention of decreasing that behavior.

Designated Driver

A person appointed to abstain from alcohol and drive others safely who have been drinking.

Avoidance Learning

Learning to avoid events or conditions associated with aversive consequences or phobias.