Refer to Table 15 2 Consider the hypothetical information in the table above

Refer to table 15 2 consider the hypothetical

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165)Refer to Table 15-2.Consider the hypothetical information in the table above for potential realGDP, real GDP, and the price level in 2016 and in 2017 if the Federal Reserve does not usemonetary policy. If the Fed uses monetary policy successfully to keep real GDP at its potentiallevel in 2017, which of the following will be higher than if the Fed had taken no action?A) potential GDP and the inflation rateB) real GDP and the inflation rateC) real GDP and potential GDPD) real GDP and the unemployment rateAnswer: B165)Page Ref: 915-917/533-535Learning Outcome: Macro-12: Explain how monetary policy influences interest rates, aggregate demand, realGDP and inflation.Table 15-3YearPotential Real GDPReal GDPPrice Level2016$18.0 trillion$18.0 trillion150201718.5 trillion18.8 trillion154166)Refer to Table 15-3.Consider the hypothetical information in the table above for potential realGDP, real GDP, and the price level in 2016 and in 2017 if the Federal Reserve does not usemonetary policy. If the Fed wants to keep real GDP at its potential level in 2017, it should166)Page Ref: 915-917/533-535Learning Outcome: Macro-12: Explain how monetary policy influences interest rates, aggregate demand, realGDP and inflation.52
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167)Refer to Table 15-3.Consider the hypothetical information in the table above for potential realGDP, real GDP, and the price level in 2016 and in 2017 if the Federal Reserve does not usemonetary policy. If the Fed uses monetary policy successfully to keep real GDP at its potentiallevel in 2017, which of the following will be lower than if the Fed had taken no action?167)Page Ref: 915-917/533-535Learning Outcome: Macro-
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