The Misperceptions Theory of the Short-Run Aggregate Supply Curve Says

Multiple Choice

The misperceptions theory of the short-run aggregate supply curve says that the quantity of output supplied will increase if the price level

A) increases by less than expected so that firms believe the relative price of their output has increased.
B) increases by less than expected so that firms believe the relative price of their output has decreased.
C) increases by more than expected so that firms believe the relative price of their output has increased.
D) increases by more than expected so that firms believe the relative price of their output has decreased.