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According the Lucas' Misperception Model,when Prices Unexpectedly Rise,suppliers Infer That

question 34

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According the Lucas' misperception model,when prices unexpectedly rise,suppliers infer that their relative prices have _____,which induces them to _____ output.


Definitions:

Syntax

The set of rules that dictates the structure of sentences in a language; it governs how words and phrases are combined to form coherent sentences.

Morphemes

The smallest grammatical units in a language that have semantic meaning.

Grammar

The set of structural rules governing the composition of clauses, phrases, and words in any given natural language.

Surface Structure

In linguistics, the term refers to the literal arrangement of words in a sentence, as contrasted with the deeper meaning (deep structure) conveyed by the sentence.

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