The Misperceptions Theory of the Short-Run Aggregate Supply Curve Says

question 143

Multiple Choice

The misperceptions theory of the short-run aggregate supply curve says that the quantity of output supplied will increase if the price level

• A)increases less than expected so that firms believe the relative price of their output has increased.
• B)increases less than expected so that firms believe the relative price of their output has decreased.
• C)increases more than expected so that firms believe the relative price of their output has increased.
• D)increases more than expected so that firms believe the relative price of their output has decreased.

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Definitions:

Pneumatophore

Roots that extend up out of the water in swampy areas and are thought to provide aeration between the atmosphere and submerged roots.

Storage Root

A root modified for the storage of nutrients and energy, typically in the form of carbohydrates, as seen in carrots and beets.

Photosynthetic Root

Roots capable of photosynthesis, typically found in some aquatic plants, allowing them to absorb carbon dioxide directly from their environment.

Arbuscule

A specialized tree-like structure formed within the cells of plant roots by certain types of fungi in a symbiotic mycorrhizal relationship.