Which of These Does Not Hold True If an Economy

question 62

Multiple Choice

Which of these does not hold true if an economy is simultaneously in long-run and short-run equilibrium?

• A)The actual price level equals the expected price level.
• B)Aggregate quantity supplied equals potential output.
• C)Aggregate quantity demanded equals potential output.
• D)Aggregate quantity supplied equals aggregate quantity demanded.
• E)Aggregate demand curve is horizontal at the potential output level.

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Definitions:

Assets

Items of value owned by a person or company, encompassing both tangible and intangible items that can be used to produce positive economic value.

Machinery

Mechanical devices or equipment that perform various tasks in a production process or other applications.

Cash Flow

The complete sum of funds moving in and out of a company, significantly influencing its cash flow.

Stockholders

Persons or organizations that hold legal ownership of one or more shares in a corporation.