Examlex

Solved

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?


Definitions:

Average Cost

The total cost of production divided by the quantity produced, indicating the cost of producing each unit of output.

Equilibrium Population

It is the size of a population at which the number of births equals the number of deaths, resulting in a stable population level over time.

Production Function

An equation that describes the maximum output achievable with a given set of inputs or resources.

Factor Price

The price paid for the use of a factor of production such as labor, capital, or land.

Related Questions