Solved

If the Economy Is Currently in Equilibrium at a Level

Question 189

Multiple Choice

If the economy is currently in equilibrium at a level of GDP that is above potential GDP, which of the following would move the economy back to potential GDP?


A) a decrease in wealth
B) a decrease in interest rates
C) an increase in business confidence
D) a decrease in the value of the dollar relative to other currencies
E) an increase in government spending

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q20: If aggregate expenditure is less than GDP,then

Q68: What impact does a higher price level

Q74: Aggregate expenditure includes consumption spending,planned investment spending,government

Q184: Tariffs and trade wars cause net exports

Q185: Firms in a small economy planned that

Q186: If the marginal propensity to save is

Q188: If inventories decline by more than analysts

Q190: On the 45-degree line diagram, the 45-degree

Q191: Decreases in the price level will<br>A)lower consumption

Q193: If the consumption function is defined as