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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