The Following Question Are Based on the Following Diagram, in Which

question 38

Multiple Choice

The following question are based on the following diagram, in which existing aggregate supply and demand curves are AS₀ and AD₀, respectively:

-As a result of these strategic input price increases,the price level

• A) rises to ₀P₂ and real output increases to ₀Q₂.
• B) increases to ₀P₃ and real output remains unchanged.
• C) remains unchanged and real output increases to ₀Q₃.
• D) remains unchanged and real output remains unchanged.
• E) rises to ₀P₁ and real output declines to ₀Q₁.

---

Definitions:

Conditioned Response

An acquired reaction to a stimulus that was initially neutral, developed through its repeated association with a stimulus that naturally triggers a response.

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without the need for prior learning or conditioning.

Unconditioned Stimulus

In classical conditioning, a stimulus that unconditionally, naturally, and automatically triggers a response without prior learning.

Conditioned Response

A conditioned reaction acquired through training to a stimulus that usually doesn't elicit a response.