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. A decrease in interest rates. b. A decrease in business confidence. c. An increase in interest rates. d. An increase in the value of the dollar relative to other currencies.

3. If the short-run macroeconomic equilibrium occurs with real GDP less than Y*, the economy isA) at its full-employment level of output.B) experiencing a recessionary gap.C) experiencing an inationary gap.D) threatened with an acceleration of ination.E) operating at full [email protected]

During an economic boom,ResponsesA potential GDP equals real GDP.potential GDP equals real GDP.B prices fall.prices fall.C aggregate demand increases.aggregate demand increases.D potential GDP is

If real GDP​ decreases: a. there will be a downward movement along the money demand curve. b. the money demand curve will shift to the left. c. there will be an upward movement along the money demand curve. d. the money demand curve will shift to the right.

Since potential GDP is drawn as a vertical line, the amount that an economy is capable of producing is not affected by what?Multiple choice question.Government spending.The price level.Taxation.Foreign markets.

The actual output is lower than the potential output. (a) What open market operation would the central bank likely engage in? (b) Would the above open market likely increase or decrease nominal interest rates? (c) Would the open market operation identified above increase or decrease real GDP? Answer all in one word or as few words as possible