Price Misperception During a Positive Technology Shock Would Cause

question 34

Multiple Choice

Price misperception during a positive technology shock would cause:

• A)output or GDP to fall by more than it would without price misperception.
• B)labour supply to fall by more than it would without price misperception.
• C)the expected price level to fall less than the actual price level falls.
• D)all of the above.