If There Was No Profit Effect, but There Was a Misperception

question 91

Multiple Choice

If there was no profit effect, but there was a misperception effect in the short run, then:

• A)both the short-run and the long-run aggregate supply curve would be upward sloping.
• B)the short-run aggregate supply curve would be upward sloping and the long-run aggregate supply curve would be vertical.
• C)the short-run aggregate supply curve would be vertical and the long-run aggregate supply curve would be upward sloping.
• D)both the short-run and the long-run aggregate supply curve would be vertical.
• E)the short-run aggregate supply curve would be horizontal and the long-run aggregate supply curve would be vertical.

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Definitions:

Architect

A professional who plans, designs, and oversees the construction of buildings.

Predicate

In grammar, it's the part of a sentence or clause containing a verb and stating something about the subject. In logic, it's the part of a proposition that asserts something about the subject.

Subject

The person, place, thing, or idea that is being discussed or described in a sentence, or the area of study one focuses on.

Proposition

A statement or assertion that expresses a judgment or opinion.