Question :
61.Peoplehadbeenexpectingthepriceleveltobe140butitturnsouttobe138.JohnsonFamilyRestaurantsincreasesthenumberofworkersitemploys.Whatcouldexplainthis?
a.bothstickypricetheoryandstickywagetheory
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61.Peoplehadbeenexpectingthepriceleveltobe140butitturnsouttobe138.JohnsonFamilyRestaurantsincreasesthenumberofworkersitemploys.Whatcouldexplainthis?
a.bothstickypricetheoryandstickywagetheory
b.stickypricetheorybutnotstickywagetheory
c.stickywagetheorybutnotstickypricetheory
d.neitherstickywagetheorynorstickypricetheory
62.Themisperceptionstheoryoftheshort-runaggregatesupplycurvesaysthatifthepricelevelishigherthanpeopleexpected,thensomefirmsbelievethattherelativepriceofwhattheyproducehas
a.decreased,sotheyincreaseproduction.
b.decreased,sotheydecreaseproduction.
c.increased,sotheyincreaseproduction.
d.increased,sotheydecreaseproduction.
63.Otherthingsthesame,ifthepricelevelislowerthanexpected,thensomefirmsbelievethattherelativepriceofwhattheyproducehas
a.decreased,sotheyincreaseproduction.
b.decreased,sotheydecreaseproduction.
c.increased,sotheyincreaseproduction.
d.increased,sotheydecreaseproduction.
64.Accordingtothemisperceptionstheoryofaggregatesupply,ifafirmthoughtthatinflationwasgoingtobe5percentandactualinflationwas6percent,thenthefirmwouldbelievethattherelativepriceofwhatitproducehad
a.increased,soitwouldincreaseproduction.
b.increased,soitwoulddecreaseproduction.
c.decreased,soitwouldincreaseproduction.
d.decreased,soitwoulddecreaseproduction.
65.Accordingtothemisperceptionstheoryoftheshort-runaggregatesupplycurve,ifafirmthoughtthatinflationwasgoingtobe4percentandactualinflationwas2percent,thenthefirmwouldbelievethattherelativepriceofwhatitproduceshad
a.increased,soitwouldincreaseproduction.
b.increased,soitwoulddecreaseproduction.
c.decreased,soitwouldincreaseproduction.
d.decreased,soitwoulddecreaseproduction.
66.Themisperceptionstheoryoftheshort-runaggregatesupplycurvesaysthatthequantityofoutputsuppliedwillincreaseifthepricelevel
a.increasesbylessthanexpectedsothatfirmsbelievetherelativepriceoftheiroutputhasincreased.
b.increasesbylessthanexpectedsothatfirmsbelievetherelativepriceoftheiroutputhasdecreased.
c.increasesbymorethanexpectedsothatfirmsbelievetherelativepriceoftheiroutputhasincreased.
d.increasesbymorethanexpectedsothatfirmsbelievetherelativepriceoftheiroutputhasdecreased.
67.Supposeworkersnoticeafallintheirnominalwagebutareslowtonoticethatthepriceofthingstheyconsumehavefallenbythesamepercentage.Theymayinferthattherewardtoworkingis
a.temporarilylowandsosupplyasmallerquantityoflabor.
b.temporarilylowandsosupplyalargerquantityoflabor.
c.temporarilyhighandsosupplyasmallerquantityoflabor.
d.temporarilyhighandsosupplyalargerquantityoflabor.
68.Otherthingsthesame,theaggregatequantityofoutputsuppliedwilldecreaseifthepricelevel
a.islowerthanexpectedsothatfirmsbelievetherelativepriceoftheiroutputhasincreased.
b.islowerthanexpectedsothatfirmsbelievetherelativepriceoftheiroutputhasdecreased.
c.ishigherthanexpectedsothatfirmsbelievetherelativepriceoftheiroutputhasincreased.
d.ishigherthanexpectedsothatfirmsbelievetherelativepriceoftheiroutputhasdecreased.
69.Otherthingsthesame,theaggregatequantityofoutputsuppliedwillincreaseifthepricelevel
a.islowerthanexpectedsothatfirmsbelievetherelativepriceoftheiroutputhasincreased.
b.islowerthanexpectedsothatfirmsbelievetherelativepriceoftheiroutputhasdecreased.
c.ishigherthanexpectedsothatfirmsbelievetherelativepriceoftheiroutputhasincreased.
d.ishigherthanexpectedsothatfirmsbelievetherelativepriceoftheiroutputhasdecreased.
70.Whentheactualchangeinthepriceleveldiffersfromitsexpectedchange,whichofthefollowingcanexplainwhyfirmsmightchangetheirproduction?
a.bothmenucostsandmistakingapricelevelchangeforachangeinrelativeprices
b.menucostsbutnotmistakingapricelevelchangeforachangeinrelativeprices
c.mistakingapricelevelchangeforachangeinrelativepricebutnotmenucosts
d.neithermenucostsnormistakingapricelevelchangeforachangeinrelativeprices