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According to the Misperceptions Theory,when P < Pe,output Is ________

question 88

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According to the misperceptions theory,when P < Pe,output is ________ its full-employment level and the short-run aggregate supply curve must shift ________ to restore full employment.


Definitions:

Improving Technology

The process of developing and applying new and better techniques, tools, and machines to increase efficiency, productivity, and quality in production or services.

Capital

Wealth in the form of money or other assets owned by a person or organization or available for purposes such as starting a company or investing.

Factor Suitability

Factor suitability refers to the degree to which a country's resources—such as labor, land, and capital—are appropriate for producing certain goods or services efficiently.

Law Of Increasing Cost

An economic principle that states as production of a good expands, reflecting increased demand or supply shifts, the cost of producing an additional unit of output increases.

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