If the Short-Run Aggregate Supply Curve Is Horizontal, Then The

question 57

Multiple Choice

If the short-run aggregate supply curve is horizontal, then the:

• A) classical dichotomy is satisfied.
• B) money supply cannot affect prices in the short run.
• C) money supply cannot affect output in the short run.
• D) money supply is irrelevant in the short run.

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Definitions:

Backward Conditioning

A less common form of classical conditioning where the unconditioned stimulus is presented before the conditioned stimulus.

Learned Response

A behavior that has been acquired or modified as a result of experience or conditioning.

Extinction

In psychology, the gradual weakening and disappearance of a conditioned response tendency; in biology, the dying out of a species.

Commission

An instruction, command, or duty given to a person or group of people.