Which of the Following Is an Incorrect Statement

question 85

Multiple Choice

Which of the following is an incorrect statement?

• A)Macroeconomic equilibrium occurs at the intersection of the aggregate demand and aggregate supply curves.
• B)The aggregate supply curve indicates a positive relationship between the price level and GDP.
• C)Other things equal, a downward shift of the aggregate demand curve implies that the economy is entering a contractionary phase.
• D)Aggregate demand and aggregate supply determine the equilibrium price and quantity of any given good.
• E)The aggregate demand curve indicates a negative relationship between the price level and GDP.

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Definitions:

Year-end UCC

The Undepreciated Capital Cost of an asset at the end of a fiscal year, relevant in tax calculations.

Net Capital Cost

The total cost of purchasing an asset including acquisition costs but net of any deductions, rebates, or subsidies.

Weighted Average Cost of Capital (WACC)

This is the average rate of return a company is expected to pay its security holders to finance its assets. WACC is the minimum return that a company must earn on an existing asset base to satisfy its creditors, owners, and other providers of capital.

Terminal Cash Flow

The final net cash flow in a series of cash flows, representing the net amount received or paid at the conclusion of a project or investment period.