Multiple Choice
If there was no profit effect, but there was a misperception effect in the short run, then:
A) both the short-run and the long-run aggregate supply curve would be upward sloping.
B) the short-run aggregate supply curve would be upward sloping and the long-run aggregate supply curve would be vertical.
C) the short-run aggregate supply curve would be vertical and the long-run aggregate supply curve would be upward sloping.
D) both the short-run and the long-run aggregate supply curve would be vertical.
E) the short-run aggregate supply curve would be horizontal and the long-run aggregate supply curve would be vertical.
Correct Answer:

Verified
Correct Answer:
Verified
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