Which of the Following Would Cause the Short-Run Aggregate Supply

question 147

Multiple Choice

Which of the following would cause the short-run aggregate supply curve to shift to the left?

• A)an increase in the price level
• B)an increase in inflation expectations
• C)a technological advance
• D)a decrease in interest rates

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Definitions:

Negative Avoidance

A learning process where actions are taken to prevent an unpleasant outcome or stimuli.

Stimulus Discrimination

The learned ability to differentiate between similar stimuli and respond only to the specific stimulus conditioned.

Instinctive Drift

The tendency for animals to revert to instinctual behaviors, overriding learned behaviors from operant conditioning.

Renewal Effect

The psychological phenomenon where previously extinguished responses reappear upon return to the original context.