Long-Run Aggregate Supply Will Decrease for All of the Following

question 390

Multiple Choice

Long-run aggregate supply will decrease for all of the following reasons EXCEPT

• A) reduced money wages.
• B) decreased human capital.
• C) decrease in the level of full employment.
• D) decreased capital.

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Definitions:

Partial Reinforcement

Means rewarding a behavior only part of the time rather than all the time (it can be applied to punishment as well, but the reward case is simpler).

Punishment

Punishment involves applying a negative consequence or removing a positive reinforcement in response to undesired behaviour, with the aim of reducing or eliminating that behaviour.

Agents

Representatives or intermediaries who act on behalf of others in various transactions or negotiations.

Principals

Individuals who have the primary responsibility and authority within an organization, often relating to decision making and financial commitments.