If the Economy Is Currently in Equilibrium at a Level

question 298

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

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Definitions:

Subsequent Actions

Activities, decisions, or measures taken following a particular event or as a continuation of a process already underway.

Projection

A psychological defense mechanism where individuals attribute their own unacceptable thoughts, feelings, or motives to another person.

Generalize

To make broad statements or conclusions based on a small amount of evidence or a limited number of examples.

Attributes

Qualities, features, or characteristics that are inherent or associated with someone or something.