One Explanation for an Upward-Sloping Short-Run Aggregate Supply Curve Is

Multiple Choice

One explanation for an upward-sloping short-run aggregate supply curve is the misperception effect, which is based on:

A) producers' tendency of increasing supply when they observe falling profit margins with increasing price level.
B) producers' tendency of increasing supply when they observe rising costs of production with decreasing price level.
C) producers' tendency of increasing supply when they observe fixed wage labor contracts.
D) producers' tendency of increasing supply when they observe a rise in prices.
E) producers' tendency of increasing supply when they observe a fall in prices.