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    Exam 11: New Classical Economics
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    According the Lucas' Misperception Model,when Prices Unexpectedly Rise,suppliers Infer That
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According the Lucas' Misperception Model,when Prices Unexpectedly Rise,suppliers Infer That

Question 34

Question 34

Multiple Choice

According the Lucas' misperception model,when prices unexpectedly rise,suppliers infer that their relative prices have _____,which induces them to _____ output.


A) decreased; increase.
B) increased; decrese.
C) decreased; decrease.
D) increased; increase.

Correct Answer:

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