(Figure: Determining SRAS Shifts) Which Statement Is NOT Correct

question 215

Multiple Choice

(Figure: Determining SRAS Shifts) Which statement is NOT correct?

• A) Equilibrium output is $3,000 worth of goods and services.
• B) An increase in aggregate demand would lead to deflation.
• C) Full employment occurs when the economy produces $3,000 worth of goods and services.
• D) In the short-run equilibrium, output can be greater than or less than $3,000.

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Definitions:

Degrees of Freedom

Degrees of freedom typically represent the number of values in a calculation that are free to vary, often used in the context of statistical tests to specify the distribution of test statistics.

T Distribution

A probability distribution that is used in hypothesis testing for small sample sizes, when the population standard deviation is unknown.

Normal Distribution

A bell-shaped frequency distribution curve, where most occurrences take place in the middle of the range and fewer on the extremes, characterized by mean and standard deviation.

Population Proportion

The ratio of members in a subset of the population who have a particular attribute to the total number of members in the population.