Which of the Following Statements Is Incorrect

question 50

Multiple Choice

Which of the following statements is incorrect?

• A) The point where the short-run and long-run supply curves intersect corresponds to the potential level of output.
• B) Any point on the short-run aggregate supply curve reflects current inflation equals target inflation.
• C) Inflation and output are unrelated in the long run.
• D) In the long run, inflation is determined by monetary policy.

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