Choose the Statement That Is Incorrect

question 94

Multiple Choice

Choose the statement that is incorrect.

• A)A one- time fall in the price level occurs either because aggregate demand decreases or because short- run aggregate supply increases.
• B)In a deflation, the inflation rate is positive but decreasing in consequent years.
• C)A one- time fall in the price level occurs when there is an increase in capital that increases potential GDP.
• D)In a deflation, the price level persistently falls.
• E)A one- time fall in the price level is not a deflation.

---

Definitions:

Mixed/Whole Numbers

Numbers that consist of both an integer and a fraction part.

Percents

A mathematical term denoting fractions of a hundred, used to describe proportions, interest rates, and changes in values.

Decimals

Numbers expressed using a decimal point to separate the whole part from the fractional part.

Mixed/Whole Numbers

Numbers consisting of both a whole number and a fractional part, commonly used in everyday measurements.