Question

How economy will reach the equilibrium potential level of output?​

Answer 1

Answer:

Higher price levels will induce producers to increase their output. ... The amount of output supplied will be greater than aggregate demand. Prices will begin to fall to eliminate the surplus output. As prices fall, the number of aggregate demand increases and the economy returns to equilibrium.

Explanation:

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Answer 2

Higher price levels will induce producers to increase their output. ... The amount of output supplied will be greater than aggregate demand. Prices will begin to fall to eliminate the surplus output. As prices fall, the amount of aggregate demand increases and the economy returns to equilibrium.