MCQOPTIONS
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| 1. |
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. | misperceptions theory of the short run aggregate supply curve |
| B. | classical dichotomy theory of the short run aggregate supply curve |
| C. | sticky price theory of the short run aggregate supply curve |
| D. | sticky wage theory of the short run aggregate supply curve |
| Answer» B. classical dichotomy theory of the short run aggregate supply curve | |