Multiple Choice
The misperceptions theory of short-run aggregate supply curve says that quantity of output will decrease if the price level
A) decreases by more than expected so that firms believe the relative price of their output has decreased.
B) decreases by more than expected so that firms believe the relative price of their output has increased.
C) decreases by less than expected so that firms believe the relative price of their output has decreased.
D) decreases by less than expected so that firms believe the relative price of their output has increased.
Correct Answer:
Verified
Correct Answer:
Verified
Q14: The long-run aggregate supply curve would shift
Q15: The sticky-price theory implies that<br>A)the short-run aggregate-supply
Q16: The aggregate supply curve is upward sloping
Q17: The sticky-price theory of the short-run aggregate
Q18: The long-run aggregate supply curve shifts right
Q20: An increase in the expected price level
Q21: If wages are sticky,then a greater than
Q22: Figure 33-3. <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2297/.jpg" alt="Figure 33-3.
Q23: The sticky-wage theory of the short-run aggregate
Q24: The long-run aggregate supply curve shifts right