People Had Been Expecting the Price Level to Be 140

question 60

Multiple Choice

People had been expecting the price level to be 140 but it turns out to be 138.Johnson Family Restaurants increases the number of workers it employs.What could explain this?

• A)both sticky price theory and sticky wage theory
• B)sticky price theory but not sticky wage theory
• C)sticky wage theory but not sticky price theory
• D)neither sticky wage theory nor sticky price theory

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Definitions:

ERG Theory

A need-based theory of motivation proposed by Clayton Alderfer, ERG theory involves three rather than five levels of needs, and also allows for someone to regress from a higher-level need to a lower-level need.

Ratio Schedules

Are partial reinforcement schedules in which behavior is reinforced as a function of how many times the behavior occurs—for example, rewarding someone every fifth time a desired behavior occurs.

Continuous Schedules

Work schedules or production plans that operate non-stop, typically 24 hours a day, often applied in industries that require constant operation.

Extinction

Also a term from reinforcement theory, extinction refers to the situation in which a behavior is followed by no consequences and eventually disappears.