According to the misperceptions theory of the short-run aggregate supply curve, if a firm thought that inflation was going to be 4 percent and actual inflation was 2 percent, then the firm would believe that the relative price of what it produces had a. increased, so it would decrease production. b. decreased, so it would increase production. c. decreased, so it would decrease production. d. increased, so it would increase production.

Option C

Explanation:

In simple words, The misconceptions principle or theory in short run maintains that when a retailer sees its commodity prices fall, it makes an incorrect inference that its relative values have decreased as well. The confusion appears to cause dealers to provide the marketplace with less volume. Thus, from the above we can conclude that the correct option is C .

anyone below or above ambitious can tell you. so crowns mean brainliest. getting brainliest means your answer needs a good explanation and the person asking the question can understand your answer easily. so say there's a multiple choice question. you don't just want to say your answer is a, hope it . provide evidence and reasoning so that they know that that is the correct answer. a good explanation should have evidence, good reasoning, and your opinion on why you picked that. you don't want to look up their question on the internet and see if you can answer it. pick questions that you 100% know the answer to, so than that way you can provide a better explanation.

best of luck,

the divergent