According to the misperception effect explanation of short-run ...

[luvbio]

According to the misperception effect explanation of short-run aggregate supply, firms increase output as the price level rises because they mistake the increase in overall prices for an increase in the relative price of their own output.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Identify the international organization that makes loans to developing countries.
 a. The World Bank
  b. The Federal Reserve
  c. The World Trade Organization
  d. The Industrial Development Board
  e. The Bank of England

[ktidd]

Answer to Question 1

True

Answer to Question 2

a

[luvbio]

Thanks for the timely response, appreciate it

[Jossy]

Great answer, keep it coming