Why Does the Short-Run Aggregate Supply Curve Shift to the Right

question 42

Multiple Choice

Why does the short-run aggregate supply curve shift to the right in the long run,following a decrease in aggregate demand?

• A)Workers and firms adjust their expectations of wages and prices downward and they accept lower wages and prices.
• B)Workers and firms adjust their expectations of wages and prices downward and they push for higher wages and prices.
• C)Workers and firms adjust their expectations of wages and prices upward and they push for higher wages and prices.
• D)Workers and firms adjust their expectations of wages and prices upward and they accept lower wages and prices.

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Definitions:

Defensive Attributions

A cognitive process in which an individual blames external forces or situations for their failures or negative outcomes, as a protective mechanism against feeling personally responsible.

Spotlight Effect

The psychological phenomenon where an individual believes they are being noticed and observed more than they actually are.

Self-Esteem

An individual's subjective evaluation of their own worth, encompassing beliefs and emotions such as pride and despair.

Girl Guide

A member of a scouting organization for girls that promotes character development, self-reliance, and responsibility.