Which of the following statements is false?
A) If the SRAS curve shifts rightward, the price level falls in the short run.
B) If AD rises and SRAS is constant, the price level rises in the short run.
C) If both SRAS and AD decline, Real GDP falls in the short run.
D) If both SRAS and AD increase, the price level necessarily rises in the short run.
E) none of the above
D
Economics
You might also like to view...
A major advantage of productivity ratios is:
What will be an ideal response?
Economics
Suppose that in the short run firms are making economic profit in a monopolistically competitive industry. Explain what will eventually happen in the long run
In your answer make sure to discuss demand, price and the relationship between price and average total cost.
Economics