According to the misperceptions theory, when P < Pe, output is ________ its full-employment level and the short-run aggregate supply curve must shift ________ to restore full employment

________ adopts the view that aggregate fluctuations are a natural consequence of an expanding economy

A) The new macroeconomics B) The Okun Gap C) Keynesian economics D) The Lucas Wedge E) Classical macroeconomics

Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. Which of the following is true?

A) If the price of iced tea is $3, producers will sell 30,000 units of iced tea but this output will be economically inefficient. B) If the price of iced tea is $3, consumers will purchase more than the economically efficient output. C) Both 10,000 and 30,000 are economically inefficient rates of output. D) If the price of iced tea is $3, the output will be economically efficient but there will be a deadweight loss.