According to the Lucas supply function, if a firm mistakenly perceives that all prices are going ________ because its own output price is going ________, it will ________ its production level.
A) up; up; increase
B) down; down; reduce
C) up; up; hold constant
D) up; down; increase

Question

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The Answer of According to the Lucas supply function, if a firm mistakenly perceives that all prices are going ________ because its own output price is going ________, it will ________ its production level.
A) up; up; increase
B) down; down; reduce
C) up; up; hold constant
D) up; down; increase

According to the Lucas Supply Function, If a Firm Mistakenly