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 less than expected so that firms believe the relative price of their output has increased.
B) increases less than expected so that firms believe the relative price of their output has decreased.
C) increases more than expected so that firms believe the relative price of their output has increased.
D) increases more than expected so that firms believe the relative price of their output has decreased.
Correct Answer:
Verified
Correct Answer:
Verified
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