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?

• A)a decrease in wealth
• B)a decrease in interest rates
• C)an increase in business confidence
• D)a decrease in the value of the dollar relative to other currencies

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Definitions:

Cyclic Pathway

A series of biochemical reactions where the last component regenerates the first, facilitating a continuous process.

Light-Dependent Reactions

The series of biochemical processes in photosynthesis that occur in the thylakoid membranes of chloroplasts, requiring light to produce ATP and NADPH.

Light-Independent Reactions

Carbon-fixing second stage of photosynthesis; use ATP and NADPH to assemble sugars from water and CO2.

Thylakoid Compartment

A membrane-bound structure found within chloroplasts that contains the chlorophyll necessary for photosynthesis.