According to Gordon Which of the Following Statements About Friedman's

question 48

Multiple Choice

According to Gordon which of the following statements about Friedman's fooling model is accurate?

• A) the demand for labor depends on the nominal wage
• B) as prices increase, firms will offer higher real wages; these higher wages will bring forth an increase in the supply curve of labor
• C) the supply curve of labor depends on the expected real wage
• D) All of the above statements are accurate.

Understand the difference between a change in quantity supplied and a change in supply.

Recognize factors that cause shifts in supply curves.

Identify the impact of technological changes on supply.

Differentiate between movements along the supply curve and shifts of the supply curve.

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Definitions:

UCS

An abbreviation for Unconditioned Stimulus, a stimulus that naturally and automatically triggers a response without any need for prior learning.

CR

A common abbreviation for Conditioned Response, which is an automatic response established by training to an ordinarily neutral stimulus.

UCR

Unconditioned Response, a naturally occurring reaction to an unconditioned stimulus.

Stimulus Generalization

A psychological phenomenon where a conditioned response starts occurring in response to stimuli that are similar but not identical to the original conditioned stimulus.