Need some help answering and understanding these questions t

Need some help answering and understanding these questions! thanks in advance!

13. The sticky-price theory of the short-run aggregate supply curve says that when the (a) higher than desired prices, which leads to an increase in the aggregate quantity (b) higher than desired prices, which leads to a decrease in the aggregate quantity of (c) lower than desired prices, which leads to an increase in the aggregate quantity of (d) lower than desired prices, which leads to a decrease in the aggregate quantity of 14. According to the misperceptions theory of the short-run aggregate supply curve, if a price level is higher than expected, some firs wil have of goods and services supplied goods and service supplied goods and services suppliedd goods and services supplied 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 increase production (b) increased, so it would decrease production (c) decreased, so it would increase production (d) decreased, so it would decrease production. 15. An increase in the expected price level shifts the (a) short-run and long-run aggregate supply curves left (b) the short-run but not the long-run aggregate supply curve left (c) the long-run but not the short-run aggregate supply curve left (d) neither the long-run nor the short-run aggregate supply curve left

Solution

13. The sticky price theory of the short run aggregate supply curve says that when the price level is higher than expected, some firms will have higher than desired prices, which will lead to an increase in aggregate quantity of goods and services supplied. So the correct option is A. It is because theory of sticky prices attempts to explain why the aggregate supply curve is upward sloping in the short run.

14. According to the misperception theory of the short run aggregate supply curve, if a firm thought that inflation was going to be 4 % and actual inflation was 2 %, then the firm would believe that the relative price of what it produce had decreased, so it would decrease production. So the correct option is D.

15. An increase in expected price level shifts the short run supply curve, but not the long run aggregate supply curve left. This is because the price level is dependent on expected price level and output. So the correct option is B.