According to the misperceptions theory, the amount by which producers increase their output when the general price level rises depends on
A) the slope of the aggregate demand curve.
B) the slope of the long-run aggregate supply curve.
C) the size of the Solow residual.
D) how much they think their relative prices have increased.
D
Economics
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What is the difference between a recessionary gap and an inflationary gap?
What will be an ideal response?
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Reserves are
a. the central bank of the U.S. b. deposits that banks hold in excess of the required amount. c. the purchase of bonds by the Federal Open Market Committee. d. deposits that banks have received but have not yet loaned out.
Economics