If the Economy Is Currently in Equilibrium at a Level

question 107

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

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Definitions:

Assets

Economic resources owned or controlled by a business or individual, capable of producing value.

Liabilities

Financial obligations or debts owed by a business to external parties or entities.

Owner's Capital

The amount of money and assets the owner has invested in a business.

Revenues

The complete revenue earned from selling goods or services that are fundamental to a company's core business activities.