Which of the following is a FALSE statement?

CA Foundation · Business Economics · MTP · June 2024
Which of the following is a FALSE statement?
(A) A. the very long run focuses on the growth of productive capacity
(B) B. in the very long run, the productive capacity is assumed to be given
(C) C. in the very short run, shifts in aggregate demand determine how much output is produced
(D) D. fluctuations in the rates of inflation and unemployment are important long-run issues

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. fluctuations in the rates of inflation and unemployment are important long-run issues

Topics: Indian Economy

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