Which of the Following Is False

question 9

Multiple Choice

Which of the following is false?

• A)The result of an expansionary fiscal policy in the short run would be an increase in the price level and an increase in RGDP.
• B)Starting at a full-employment equilibrium, the only long-term effect of an increase in aggregate demand includes an increase in real output.
• C)Starting at a full-employment equilibrium, once the economy has returned to its long run equilibrium after an increase in government purchases, employment will be equal to full employment.
• D)When the government borrows money to finance a deficit, it increases the overall demand for money in the money market, driving interest rates up.
• E)None of the above are false; all are true.

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Definitions:

Defective

Pertains to items or products that fail to meet the required standards or specifications.

Nondefective

Referring to items or products that meet the required quality standards and are free of defects.

Control Charts

Tools used in statistical process control to monitor the consistency of processes over time and identify variances.

Control Limits

Statistical boundaries in a control chart that determine the acceptability range for a process variability, outside of which signals a process is out of control.