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Economics Mcqs
Q
Suppose the price level falls but suppliers only notice that the price of their particular product has fallen Thinking there has been a fall in the relative price of their product they cut back on production, This is a demonstration of the ?
AA. Misperceptions theory of the short run aggregate supply curve
BB. Classical dichotomy theory of the short run aggregate supply curve
CC. Sticky price theory of the short run aggregate supply curve
DD. Sticky wage theory of the short run aggregate supply curve
Correct Answer:
A. A. Misperceptions theory of the short run aggregate supply curve