The misperceptions theory of short-run aggregate supply curve says that quantity of output will decrease if the price level
a. decreases by more than expected so that firms believe the relative price of their output has decreased.
b. decreases by more than expected so that firms believe the relative price of their output has increased.
c. decreases by less than expected so that firms believe the relative price of their output has decreased.
d. decreases by less than expected so that firms believe the relative price of their output has increased.
a
Economics