Expected wealth is a weighted average in which the weights are

Suppose the economy is at a short-run equilibrium GDP that lies above potential GDP. Which of the following will occur because of the automatic mechanism adjusting the economy back to potential GDP?

A) Output will increase. B) Short-run aggregate supply will shift to the left. C) Unemployment will decline. D) Prices will decline.

One way of reducing our trade deficit would be to get Americans to

A. save more and consume more. B. save more and consume less. C. save less and consume less. D. save less and consume more.