According to the Misperceptions Theory of the Short-Run Aggregate Supply

Multiple Choice

According to the misperceptions theory of the short-run aggregate supply curve,if a firm thought that inflation was going to be 4 percent and actual inflation was 2 percent,then the firm would believe that the relative price of what it produces 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.