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.
c
You might also like to view...
According to monetary theories of the business cycle, fluctuations are
a. independent of the banking system. b. more prevalent in countries with modern banking systems. c. more prevalent in agricultural countries. d. less prevalent in those countries with modern banking systems.
Another way to describe the growth rate of spending is:
A. the growth rate of real GDP. B. the growth rate of nominal GDP. C. the growth rate of the velocity of money. D. the growth rate of the money supply.
Cigarette companies favored a ban on cigarette advertising
What will be an ideal response?
Once a public good is produced, everyone
A. consumes the same amount, but the willingness to pay will be different for different individuals. B. can consume a different amount and pay different prices for the product. C. consumes the same amount and everyone's willingness to pay is the same. D. can consume a different amount depending on their willingness to buy the good.