Which of the Following Would Cause an Increase in the Potential

question 67

Multiple Choice

Which of the following would cause an increase in the potential output of a country?

• A) An increase in the capital stock
• B) A temporary decrease in exports
• C) An increase in the money supply
• D) A decrease in the labor force

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Definitions:

U.S.

United States, a federal republic consisting of 50 states, a federal district, and several territories, characterized by its diverse geography and population.

Ruble

The Ruble is the official currency of Russia, historically subject to fluctuations and significant changes over time.

Current Account Surplus

A current account surplus occurs when a country's total exports of goods, services, and transfers exceed its total imports, indicating it is earning more from foreign trade than it is spending.

Unilateral Tariff

Tariffs imposed by one country on the imports from all or specific nations, without reciprocal action.