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

question 66

Multiple Choice

If there was no profit effect, but there was a misperception effect in the short run, then SRAS is ____ and LRAS is ____.

• A)​upward sloping; upward sloping
• B)​upward sloping: vertical
• C)​vertical; upward sloping
• D)​vertical; vertical

---

Definitions:

Hypotheses

Proposed explanations made on the basis of limited evidence as starting points for further investigation.

Possible Explanations

Various theories or reasons presented to understand or justify an occurrence, phenomenon, or decision.

Unrepresentative Data

Data that does not accurately reflect the characteristics or distribution of the whole population or phenomenon it is supposed to represent.

Acceptance

The act of receiving or consenting to something offered or proposed, often implying agreement or approval.