Which of the following equations is most likely to represent short-run aggregate supply according to the misperceptions theory? A)Y = 6000 B)Y = 6000 + 50(P - P^e) C)P = 2 D)PY = 12,000

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The misperceptions theory suggests that in the short-run, producers may mistakenly perceive changes in the overall price level as changes in the relative price of their specific product. Therefore, the equation that includes a term for the difference between the actual price level and the expected price level (P^e) is the most likely to represent short-run aggregate supply according to this theory. Choice B includes this term, making it the best choice for the misperceptions theory.

Which of the Following Equations Is Most Likely to Represent