Which of the Following Statements Is False

question 11

Multiple Choice

Which of the following statements is false?

• A) Some prices in an economy adjust faster than other prices.
• B) Aggregate demand curves slope downward.
• C) Firms may not adjust their prices immediately because they may be unable to figure out whether a decline in demand is temporary or permanent.
• D) The absolute price of a good is the dollar or money price of the good.
• E) none of the above

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Definitions:

Variation

The measure of dispersion in a dataset, showing how much individual data points differ from the mean.

Special Causes

Unusual, non-random factors that cause variability in a process, distinct from common causes.

Common Causes

Natural variations in a process, which are constant and inherent in the system over time, as opposed to special causes that are unusual or not part of the process.

Special Causes

Unusual events or circumstances that can cause variations in a process or system, distinguishing them from common, everyday variations.