question archive Which of the following statements are INCORRECT? A

Which of the following statements are INCORRECT? A

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Which of the following statements are INCORRECT?

A. "When expectations about the future demand are low, this may lead to low-capacity utilisation for firms."

B. "When faced with income shocks, households may not be able to smooth their consumption due to credit market exclusion that hinders their ability to borrow."

C. "In the case of a decrease in aggregate demand that brings equilibrium output below potential, there is no need of central bank intervention as there is no inflationary pressure in the economy."

D. "When the economy is at its potential output, actual unemployment is equal to equilibrium unemployment"

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Option 1

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