If the Price Level Falls, What Will Happen to the Aggregate

question 174

Multiple Choice

If the price level falls, what will happen to the aggregate supply curve?

• A)It will shift outward.
• B)It will shift inward.
• C)Nothing.
• D)It will get steeper.
• E)It will get flatter.

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Definitions:

Conditioned Response

A conditioned response is an automatic response established by training to an ordinarily neutral stimulus.

Unconditioned Stimulus (UCS)

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

Conditioned Stimulus (CS)

A neutral stimulus that, once paired with an unconditioned stimulus, triggers a conditioned response.

Blocking Effect

A phenomenon in which a previously learned association prevents the acquisition of a new association involving the same stimulus.