Table 17-1 -Refer to Table 17-1

question 149

Multiple Choice

Table 17-1
$$\begin{array} { | c | c | c | c | } \hline \text { Year } & \text { Potential Real GDP } & \text { Real GDP } & \text { Price Level } \\\hline 2014 & \$ 14.2 \text { trillion } & \$ 14.2 \text { trillion } & 145 \\\hline 2015 & 14.6 \text { trillion } & 14.5 \text { trillion } & 147 \\\hline\end{array}$$
-Refer to Table 17-1.The hypothetical information in the table shows what the values for real GDP and the price level will be in 2015 if the Fed does not use monetary policy.Which of the following policies makes sense if the Fed wants to keep real GDP at its potential level in 2015?

• A)The trading desk should sell Treasury securities.
• B)The Fed should lower the target for the federal funds rate.
• C)The Fed should pursue contractionary policy.
• D)The Fed should lower capital gains taxes.

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Definitions:

Ethnic Background

The cultural heritage, nationality, or lineage of an individual, often influencing their identity and social experiences.

Inflammation

A biological response to harmful stimuli, such as pathogens, damaged cells, or irritants, involving immune cells, blood vessels, and molecular mediators.

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The body's defense mechanism against pathogens, including bacteria, viruses, fungi, and parasites.

Insulin Resistance

A condition in which the body's cells do not respond properly to insulin, leading to elevated blood sugar levels.