Explain Why the Short-Run Aggregate Supply Curve Is Upward Sloping

question 183

Essay

Explain why the short-run aggregate supply curve is upward sloping and discuss the implications of this fact for monetary policy.

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Definitions:

Negative Punishment

A behavior modification technique involving the removal of a desirable stimulus to decrease the likelihood of a behavior's recurrence.

Positive Punishment

A decrease in behavior that results from an added consequence.

Negative Reinforcement

The strengthening of a behavior because a negative condition is removed or avoided.

Punishing Reinforcement

A term that amalgamates concepts incorrectly; in behaviorism, punishment is used to decrease a behavior's occurrence, whereas reinforcement is used to increase it.