If Workers Actively Demand Pay Increases When the Price Level

question 101

Multiple Choice

If workers actively demand pay increases when the price level is rising and are willing to accept pay cuts when the price level is falling,then the short-run aggregate supply curve would be

• A) negatively sloped.
• B) nearly vertical.
• C) nearly horizontal.
• D) positively sloped as usual.
• E) always shifting to the right or the left.

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Definitions:

Attribution Theory

A concept in social psychology that explains how individuals infer the causes of their own and others' behaviors, attributing them to either internal dispositions or external situations.

Foot-In-The-Door Phenomenon

A psychological tactic involving getting a person to agree to a small request to increase the chances of agreeing to a larger request later.

Informational Social Influence

The influence to accept information from others as evidence about reality, often leading to conformity in ambiguous situations.

Cognitive Dissonance Theory

A psychological theory that explains the discomfort that arises from holding two conflicting beliefs, leading to changes in attitudes, beliefs, or behaviors.