The Short-Run Aggregate Supply Curve Is Positively Sloped Because

question 13

Multiple Choice

The short-run aggregate supply curve is positively sloped because:

• A) wages and other costs of production respond immediately to changes in prices.
• B) profit is lower when prices increase, so output decreases.
• C) workers are willing to work for lower wages rather than be laid off.
• D) higher prices lead to higher profit and higher output.

---

Definitions:

Spreading Activation

A theory in cognitive psychology that suggests ideas in memory are connected and that the activation of one idea can trigger the activation of related ideas.

Lexical Decision Tasks

A psychological experiment that involves determining whether a string of letters is a word or a non-word.

Procedural Memory System

A type of long-term memory responsible for knowing how to do things, also known as muscle memory, involving the performance of particular types of tasks without conscious awareness.

Connectionist Model

A computational model in cognitive science that represents mental phenomena using networks of artificial neural units, drawing inspiration from the neural structures in the brain.