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.
d
You might also like to view...
The natural rate of output is ________
A) independent of the inflation rate B) always lower than potential output C) unrelated to the natural rate of unemployment D) all of the above E) none of the above
When cost externalities exist, an optimal equilibrium can be attained if the government
A) restricts production. B) levies a tax for the difference between private costs and social costs. C) prohibits production. D) All three above E) Both A and B