The misperceptions theory of the short-run aggregate supply curve says that the quantity of output supplied will increase if the price level
a. increases by less than expected so that firms believe the relative price of their output has increased.
b. increases by less than expected so that firms believe the relative price of their output has decreased.
c. increases by more than expected so that firms believe the relative price of their output has increased.
d. increases by more than expected so that firms believe the relative price of their output has decreased.
c
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The principle of subsidiarity states that
A) individual countries do not have to give up individual sovereignty for the good of the union. B) the union only has the authority to deal with issues best handled by international action. C) the union is the ultimate arbiter of all European issues. D) the union has no authority within countries.
Over time, the Phillips curve has:
a. remained stable. b. shifted downward. c. shifted upward. d. has become positively sloped.