If the Economy Is Currently in Equilibrium at a Level

question 298

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

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Definitions:

Utility Function

A mathematical representation that describes how consumers allocate their spending to maximize satisfaction or utility from goods and services.

Course Grade

The evaluation or assessment of a student's performance in a course, typically represented as a letter or number.

Min/Max Function

A mathematical function that identifies the minimum or maximum value within a particular set of data or input.

Same Income

A scenario in which two or more entities earn or receive an identical amount of money.