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If the Current Equilibrium Output Lies Above Potential Output, Then

question 67

Multiple Choice

If the current equilibrium output lies above potential output, then an appropriate fiscal policy would be to _____, which will shift the AD curve to the _____.


Definitions:

Available Infrastructure

The existing facilities and systems serving a country, city, or area, including transportation and communication systems, power plants, and schools.

Skill Needs

The specific abilities and expertise required for performing certain tasks or jobs effectively.

Response Time

The amount of time it takes to react to a request or stimulus, often used in the context of customer service or computer processing.

Tariffs

Taxes imposed by a government on imported or exported goods.

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