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

question 26

Multiple Choice

The misperceptions theory of the short-run aggregate supply curve says that if the price level is higher than people expected,then some firms believe that the relative price of what they produce has

• A)decreased,so they increase production.
• B)decreased,so they decrease production.
• C)increased,so they increase production.
• D)increased,so they decrease production.

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Definitions:

Conscientiousness

A personality trait characterized by organization, dependability, and a strong sense of duty.

Agreeableness

A personality trait characterized by warmth, friendliness, and a cooperative attitude towards others.

Internal Locus

A belief that one has control over one's life and outcomes through one's own efforts, abilities, and actions.

Volleyball

A team sport in which two teams of six players are separated by a net, with each team trying to score points by grounding a ball on the other team's court.