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.
Correct Answer:
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