8. In order to explain the apparent non-neutrality of money, adherents of the classical model have introduced the misperceptions theory. The misperceptions theory is based on the idea that producers have imprecise information about the current price level. According to the mispercep- tions theory, the amount of output supplied equals the full-employment level of output Y only if the actual price level equals the expected price level. When the price level is higher than expected, suppliers are fooled into thinking that the relative prices of the goods they supply have risen, so they supply a quantity of output that exceeds Y. Similarly, when the price level is lower than expected, the quantity of output supplied is less than Y.