4119EconomicsMedium
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?
Asticky wage theory of the short run aggregate supply curve
Bmisperceptions theory of the short run aggregate supply curve
Csticky price theory of the short run aggregate supply curve
Dclassical dichotomy theory of the short run aggregate supply curve
Correct answer
B. misperceptions theory of the short run aggregate supply curve
Explanation
The correct answer is misperceptions theory of the short run aggregate supply curve.