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

Question

Quizplus · Accepted Answer

This statement is false because even though both SRAS and AD increase, it is possible for the price level to remain constant or even decrease in the short run depending on the magnitude of the shifts.

Which of the Following Statements Is False