A Decrease in the Expected Future Price Level

question 183

Multiple Choice

A decrease in the expected future price level:

• A)​Shifts both SRAS and LRAS to the left.
• B)​Shifts both SRAS and LRAS to the right.
• C)​Shifts SRAS left but leaves LRAS unchanged.
• D)​Shifts SRAS right but leaves LRAS unchanged.

---

Definitions:

Pavlovian Conditioning

A learning process where an originally neutral stimulus becomes associated with a specific physiological or emotional response after being paired with a stimulus that naturally evokes that response.

Primary Drives

are innate biological needs (e.g., hunger, thirst, sleep) that motivate behavior essential for survival.

Hunger

A physiological state that motivates an organism to seek food for energy.

Thirst

The basic physiological sensation of needing to drink fluids, triggered by the body's need for water to maintain balance and function.