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According to the Misperceptions Theory,when P < Pe,output Is ________

Question 22

Multiple Choice

According to the misperceptions theory,when P < Pe,output is ________ its full-employment level and the short-run aggregate supply curve must shift ________ to restore full employment.


A) below; upward
B) below; downward
C) above; upward
D) above; downward

Correct Answer:

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