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11 December, 17:53

If the economy is currently in equilibrium at a level of GDP that is below potential GDP, what would move the economy back to potential GDP?

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  1. 11 December, 20:16
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    Answer: An increase in wealth will move the economy back to potential GDP.

    Explanation: If there is an increase in the wealth than it will bring the GDP up. Once GDP is brought up then there is a better chance of the economy reaching equilibrium. Equilibrium happens when two opposite forces are balanced out.
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