Ask Question
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?

+4
Answers (1)
  1. 11 December, 20:16
    0
    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.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “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? ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers