If the Economy Is Currently in Equilibrium at a Level

question 203

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

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