MCQOPTIONS
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				| 1. | 
                                    Suppose the price level falls but because of fixed nominal wage contracts the real wage rises and firms cut back on production This is a demonstration of the ? | 
                            
| A. | sticky-wage theory of the short-run aggregate supply curve | 
| B. | classical dichotomy theory of the short-run aggregate supply curve | 
| C. | misperceptions theory of the short-run aggregate supply curve | 
| D. | sticky-price theory of the short run aggregate supply curve | 
| Answer» B. classical dichotomy theory of the short-run aggregate supply curve | |