What Do the Wealth and Foreign Trade Effects Have in Common

question 2

Multiple Choice

What do the wealth and foreign trade effects have in common? They both help to explain:

• A)why the aggregate demand curve is downward-sloping
• B)why the aggregate supply curve is upward-sloping
• C)shifts in the aggregate demand curve
• D)shifts in the aggregate supply curve
• E)why the aggregate supply curve is downward-sloping

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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.