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:

Cost Method

An accounting method used to value holdings in another company at the cost of acquisition plus any additional costs incurred.

Carrying Amount

The value at which an asset is recognized on the balance sheet after deducting any accumulated depreciation and impairment losses.

Associate

In a business context, this usually refers to a person or entity that is connected with another as a partner, colleague, or member of an enterprise.

Subsidiary

A company that is completely or partially owned and controlled by another company, known as the parent company.