Which of the Following Is an Incorrect Statement

question 85

Multiple Choice

Which of the following is an incorrect statement?

• A)Macroeconomic equilibrium occurs at the intersection of the aggregate demand and aggregate supply curves.
• B)The aggregate supply curve indicates a positive relationship between the price level and GDP.
• C)Other things equal, a downward shift of the aggregate demand curve implies that the economy is entering a contractionary phase.
• D)Aggregate demand and aggregate supply determine the equilibrium price and quantity of any given good.
• E)The aggregate demand curve indicates a negative relationship between the price level and GDP.

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Definitions:

Employee Incentives

Programs or rewards designed to motivate employees and align their actions with organizational goals.

Economic Darwinism

Differential variations among firms’ organizational architectures, decision processes, or technologies that affect firms’ chances of survival in a competitive environment. Natural selection is the process whereby those differential variations that increase an organization’s chances of survival will tend to be imitated and become more prevalent in other firms. Managers will not imitate management practices of failing firms but those of successful firms.

Inefficient Behavior

Actions or practices that result in a waste of resources or less optimal outcomes.

Accounting Practices

The standard methods and procedures used by companies to record, report, and manage financial information.