Describe the Change in Short-Run Aggregate Supply That Should Result

question 27

Essay

Describe the change in short-run aggregate supply that should result from each of the following changes in determinants.Assume that nothing else is changing besides the identified change.(Use "Decrease" or "Increase.")
(a) A rise in the average price of inputs;
(b) An increase in worker productivity;
(c) Government antipollution regulations become stricter;
(d) A new subsidy program is enacted for new business investment in productive equipment;
(e) Energy prices decline.

Understand the concept of framing and its impact on decision making.

Grasp the basic units and structure of cognitive processes including concepts, prototypes, and heuristics.

Apply the principles of cognition to evaluate and develop strategies for problem-solving and improving decision making.

Recognize and explain cognitive biases such as belief perseverance, confirmation bias, and the availability heuristic.

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Definitions:

Divestiture

The process of selling off subsidiary business interests or investments, often to streamline operations or focus on core activities.

Debasement

refers to the act of lowering in rank, dignity, or significance, often through degradation or depreciation.

Hazing

The practice of subjecting newcomers to abusive, humiliating, or challenging tasks and rituals, often as a rite of passage in certain groups or organizations.

Realistic Job Preview

An informational session or material given to prospective employees that accurately represents the positive and negative aspects of a job.