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

question 42

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

---

Definitions:

Brain Stem

The brain stem is the lower part of the brain that connects to the spinal cord and controls vital functions such as heart rate, breathing, and sleep cycles.

AIDS-Infected

A term used to describe individuals who have been infected by the HIV virus and have developed the advanced state of the infection, known as Acquired Immunodeficiency Syndrome (AIDS).

SIDS

Sudden Infant Death Syndrome, an unexplained death of a seemingly healthy baby, typically during sleep, in infants under one year old.

Sleep On Backs

A recommended sleeping position for infants to reduce the risk of Sudden Infant Death Syndrome (SIDS), also known as the supine sleeping position.