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

question 247

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 short-run equilibrium, output can be greater than or less than $3,000.

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Definitions:

Tangible Property

Physical property that can be touched and seen, such as buildings, machinery, and inventory.

Stocks

Shares of ownership in a corporation, giving holders a claim on the corporation's earnings and assets.

Bonds

Bonds are fixed-income investments representing loans made by an investor to a borrower, typically corporate or governmental, with terms specifying repayment of principal and interest.

Negotiable

Capable of being discussed or modified in terms of agreement or transferability, often used in relation to contracts or financial instruments.