Multiple Choice
Price misperception during a positive technology shock would cause:
A) output or GDP to fall by more than it would without price misperception.
B) labour supply to fall by more than it would without price misperception.
C) the expected price level to fall less than the actual price level falls.
D) all of the above.
Correct Answer:

Verified
Correct Answer:
Verified
Q29: If the nominal wage rises from €10
Q30: In the current period a perceived increase
Q31: The price misperception model predicts:<br>A)the price level
Q32: Real variables can only be affected by:<br>A)unperceived
Q33: While price misperceptions can cause an increase
Q35: Monetary policy can affect real variables in
Q36: If the nominal wage is €10 per
Q37: Monetary policy can affect real variables in
Q38: The price misperception model predicts:<br>A)the price level
Q39: If households misperceive prices, they may change