Suppose the Full-Employment Level of Real Output (Q)for a Hypothetical

question 139

Multiple Choice

Suppose the full-employment level of real output (Q) for a hypothetical economy is $500 and that the price level (P) initially is 100.Use the following short-run aggregate supply schedules to answer the next question.

-Refer to the information above.In the long run,an increase in the price level from 100 to 125 will:

• A) increase real output from $500 to $560.
• B) decrease real output from $500 to $440.
• C) change the aggregate supply schedule from (a)to (c)and result in an equilibrium level of real output of $560.
• D) change the aggregate supply schedule from (a)to (b)and result in an equilibrium level of real output of $500.

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Definitions:

Complex Behavior

Actions or series of actions that involve multiple steps, decision-making processes, or behaviors that demonstrate a level of sophistication and are often learned rather than instinctual.

Guthrie

proposed the one-trial learning theory, emphasizing that a stimulus paired once with a response can establish a connection, in contrast to theories requiring multiple pairings.

Stimuli

External or internal factors that elicit responses from biological organisms.

Response

An action or change in behavior that occurs as a result of a stimulus.