According to the Misperceptions Theory of the Short-Run Aggregate Supply

question 9

Multiple Choice

According to the misperceptions theory of the short-run aggregate supply curve,if a firm thought that inflation was going to be 4 percent and actual inflation was 2 percent,then the firm would believe that the relative price of what it produces had

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

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Definitions:

Stoics

Followers of Stoicism, an ancient Greek school of philosophy that teaches the development of self-control and fortitude as a means of overcoming destructive emotions.

Death

The cessation of all biological functions that sustain a living organism, marking the end of life.

Divine Plan

A belief in a predetermined course of events controlled or envisioned by a supernatural power.

Stoics

Adherents of Stoicism, an ancient Greek philosophy that teaches the development of self-control and fortitude as a means of overcoming destructive emotions.