Multiple Choice
If the economy is currently in equilibrium at a level of GDP that is below potential GDP, which of the following would move the economy back to potential GDP?
A) an increase in wealth
B) an increase in interest rates
C) a decrease in business confidence
D) an increase in the value of the dollar relative to other currencies
E) a decrease in government spending
Correct Answer:
Verified
Correct Answer:
Verified
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