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If There Was No Profit Effect, but There Was a Misperception

Question 91

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.

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