The Short-Run Aggregate Supply Curve Is Upsloping Because Higher Price

question 256

Multiple Choice

The short-run aggregate supply curve is upsloping because higher price levels

• A) lower interest rates and encourage firms to invest and produce more.
• B) create incentives to expand output when resource prices are unresponsive to price-level changes.
• C) encourage importation of foreign goods.
• D) create an expectation among producers of still higher price levels.

Identify the relationship between effort, performance, and outcomes as described in expectancy theory.

Distinguish between different motivational theories, including McClelland's acquired needs theory, Alderfer's ERG theory, and goal-setting theory.

Apply expectancy theory to practical situations in motivating staff and improving work performance.

Recognize the significance of organizational justice and how it influences motivation and behavior in the workplace.

---

Definitions:

Reciprocity Norm

A social norm that dictates that we should repay, in kind, what another person has provided us, promoting the exchange of goods, services, and favors.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values.

Fundamental Attribution Error

The tendency to overemphasize personality-based explanations for behaviors observed in others while underemphasizing the role of situational factors.

Defensive Attribution

A psychological process by which individuals tend to ascribe greater blame to the victims of misfortune for their own victimization when they feel threatened by the likelihood of a similar event happening to them.