According to the Misperceptions Theory of Aggregate Supply,if a Firm

Multiple Choice

According to the misperceptions theory of aggregate supply,if a firm thought that inflation was going to be 5 percent and actual inflation was 6 percent,then the firm would believe that the relative price of what it produce had

A) increased,so it would increase production.
B) increased,so it would decrease production.
C) decreased,so it would increase production.
D) decreased,so it would decrease production.