If Prices and Wages Are Not Flexible,an Adverse Supply Shock

question 73

Multiple Choice

If prices and wages are not flexible,an adverse supply shock is most likely to be followed by

• A)a rightward shift of the aggregate supply curve
• B)a rightward shift of the aggregate demand curve
• C)a leftward shift of the aggregate supply curve
• D)a leftward shift of the aggregate demand curve
• E)persistent unemployment

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Definitions:

Operant Conditioning

A learning process in which the strength of a behavior is modified by reinforcement or punishment.

Ivan Pavlov

A Russian physiologist known for his work in classical conditioning, particularly his experiments with dogs, demonstrating that behavior can be conditioned.

Classical Conditioning

Classical conditioning is a learning process that occurs when two stimuli are repeatedly paired together; an initially neutral stimulus eventually elicits a response that was initially elicited by another stimulus.

Contrived Extrinsic Rewards

Artificial incentives given to motivate behavior, such as bonuses or points, that do not naturally relate to the task being performed.