Use the Following to Answer Questions

question 213

Multiple Choice

Use the following to answer questions
Figure: Determining SRAS Shifts
-(Figure: Determining SRAS Shifts) Which statement is NOT correct?

• A) Equilibrium output is $3,000 worth of goods and services.
• B) An increase in aggregate demand would lead to deflation.
• C) Full employment occurs when the economy produces $3,000 worth of goods and services.
• D) In the short-run equilibrium,output can be greater than or less than $3,000.

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Schramm's Model

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