Use the Figure Below to Answer the Following Question(s)

question 143

Multiple Choice

Use the figure below to answer the following question(s) . Figure 10-14
The economy's initial aggregate demand (AD₀) and aggregate supply (SRAS₀ and LRAS) curves are illustrated in Figure 10-14. Which of the following is true?

• A) The profits of business firms are higher at I than J.
• B) H is a point of long-run equilibrium.
• C) Downward pressure on prices occurs at point G.
• D) Point F is consistent with long-run equilibrium.

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Definitions:

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without the need for prior learning.

Conditioned Response

An automatic response established by training to an ordinarily neutral stimulus.

Conditioned Stimulus (CS)

A previously neutral stimulus that eventually elicits a conditioned response after being paired with the unconditioned stimulus.

Unconditioned Stimulus (US)

A stimulus that produces a response without prior learning.