Consider the Basic AD/AS Model

question 71

Multiple Choice

Consider the basic AD/AS model.If their unit costs rise as output increases,price-taking firms will be prepared to produce ________ only if ________.

• A)more; prices decrease
• B)more; the economy is in equilibrium
• C)their current output; prices increase
• D)less; prices increase
• E)more; prices increase

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Definitions:

Classical Conditioning

A foundational concept in behavioral psychology where an automatic conditioned response is established by pairing a neutral stimulus with an unconditioned stimulus.

Fixed-Interval Schedule

A system where the initial reaction is incentivized after a predetermined period has passed.

Reinforcement

In psychology, it is a consequence that will strengthen an organism's future behavior whenever that behavior is preceded by a specific antecedent stimulus.

Negative Reinforcement

A behavioral principle where the removal of an unpleasant stimulus following a behavior increases the likelihood of that behavior being repeated in the future.