Multiple Choice
According to misperceptions theory,if a firm thought that inflation was going to be 5 percent and actual inflation was 4 percent,how may the firm be affected?
A) It may believe that the relative price has increased,so it would increase production.
B) It may believe that the relative price has increased,so it would decrease production.
C) It may believe that the relative price has decreased,so it would increase production.
D) It may believe that the relative price has decreased,so it would decrease production.
Correct Answer:
Verified
Correct Answer:
Verified
Q28: Which of the following shifts the short-run
Q36: Scenario 14-2<br>The economy is in long-run equilibrium.
Q131: What happens when the dollar depreciates?<br>A) Canadian
Q132: Consider the following equation where a is
Q140: Which statement best characterizes the aggregate-demand curve?<br>A)
Q141: What are the variables on the vertical
Q232: Why does a decrease in the price
Q248: Why does an increase in the price
Q250: Scenario 14-1<br>The economy is in long-run equilibrium.
Q253: How do changes in the price of