Table 27-2 -Refer to Table 27-2. Consider the Hypothetical Information in the Hypothetical

question 92

Multiple Choice

Table 27-2

-Refer to Table 27-2. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2018 and in 2019 if Congress and the president do not use fiscal policy. If Congress and the president want to keep real GDP at its potential level in 2019, they should

• A) buy Treasury securities.
• B) conduct expansionary fiscal policy.
• C) decrease government purchases.
• D) decrease the discount rate.

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Definitions:

Alluvial Fan

A low, gently sloping mass of sediment, shaped like an open fan or a segment of a cone; typically deposited by a stream where it exits a mountain range or joins a main stream.

Ice-Core Data

Data obtained from cylinders of ice drilled from glaciers or ice sheets, used to study past climates and atmospheric compositions.

Ice Cores

Cylinders of ice drilled from glaciers and ice caps, which are studied to understand past climate conditions through the analysis of trapped gas bubbles and particulate matter.

Desert Feature

Characteristics or remarkable landmarks found in desert landscapes, such as dunes, oasis, or rock formations.