Which of the Following Statements Is FALSE? in the Long

question 109

Multiple Choice

Which of the following statements is FALSE? In the long run, monetary policy:

• A)affects only the aggregate price level.
• B)does not affect aggregate output.
• C)is neutral.
• D)increases potential output.

---

Definitions:

Reinforcement

A principle in behavior psychology where an outcome strengthens an individual's future behavior whenever that behavior is preceded by a specific antecedent stimulus.

Social Smile

A voluntary expression typically exhibited by infants around 6 to 8 weeks of age in response to human faces or social interaction.

Cross-Sectional

A type of research design that examines data from a population, or a representative subset, at a specific point in time.

Emotional Reactions

The spontaneous and often unpredictable psychological responses derived from one’s feelings towards an external event or thought.