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 ?
  • A A. Misperceptions theory of the short run aggregate supply curve
  • B B. Classical dichotomy theory of the short run aggregate supply curve
  • C C. Sticky price theory of the short run aggregate supply curve
  • D D. Sticky wage theory of the short run aggregate supply curve
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