If the Price Level Falls, the Aggregate Supply Increases as a Result

question 70

True/False

If the price level falls, the aggregate supply increases as a result of the aggregate demand curve shifting left.

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Definitions:

Classical Conditioning

A method of learning in which two stimuli are consistently associated; the response initially produced by the second stimulus ultimately becomes triggered by just the first stimulus alone.

Extinction

The process through which the conditioned response is weakened by presenting the conditioned stimulus without the unconditioned stimulus, eventually leading to the cessation of the conditioned response.

Conditioned Stimulus

A stimulus that initially has no response connected to it but gains the power to evoke a response through association with an unconditioned stimulus.

Conditioning Theory

A psychological theory that explains learning as a process where behavior is modified through reinforcement or punishment.