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.

---

Definitions:

Different

Not the same as another or each other; unlike in nature, form, or quality.

Rich

Having an abundance of wealth, resources, or valuable possessions.

Halo Effect

A cognitive bias in which an observer's overall impression of a person, company, brand, or product influences the observer's feelings and thoughts about that entity's character or properties.

Primacy Effect

The tendency for individuals to remember items at the beginning of a list better than items in the middle or at the end.