Which of the Following Statements Is False

question 40

Multiple Choice

Which of the following statements is false?

• A) If the SRAS curve shifts rightward,the price level falls in the short run.
• B) If AD rises and SRAS is constant,the price level rises in the short run.
• C) If both SRAS and AD decline,Real GDP falls in the short run.
• D) If both SRAS and AD increase,the price level necessarily rises in the short run.
• E) none of the above

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Definitions:

Work in Process Inventory

Inventory that includes all materials, labor, and overhead costs for products that are in the manufacturing process but not yet completed.

Manufacturing Costs Incurred

Expenses directly related to the production of goods, including materials, labor, and overhead costs.

Work in Process Inventory

Work in process (WIP) inventory represents goods that are partially completed in the manufacturing process but not yet finished.

Factory Overhead

All indirect costs associated with the production process, such as utilities, maintenance, and salaried staff, that are not directly tied to specific units of production.