Multiple Choice
According to the misperceptions theory of aggregate supply,if a firm thought that inflation was going to be 5 percent and actual inflation was 6 percent,then the firm would believe that the relative price of what they produce had
A) increased,so they would increase production.
B) increased,so they would decrease production.
C) decreased,so they would increase production.
D) decreased,so they would decrease production.
Correct Answer:
Verified
Correct Answer:
Verified
Q16: The curve that shows the quantity of
Q35: Other things the same,a decrease in the
Q67: Because economists understand what things change GDP,
Q98: The aggregate quantity of goods and services
Q108: The wealth effect,interest-rate effect,and exchange-rate effect are
Q132: The initial impact of an increase in
Q136: Fluctuations in real GDP are caused only
Q304: Which of the following statements is correct?<br>A)
Q308: Figure 33-2. <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4796/.jpg" alt="Figure 33-2.
Q311: Figure 33-2. <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4796/.jpg" alt="Figure 33-2.