Table 17-2 -Refer to Table 17-2

question 63

Multiple Choice

Table 17-2
$$\begin{array} { | c | c | c | c | } \hline \text { Year } & \text { Potential Real GDP } & \text { Real GDP } & \text { Price Level } \\\hline 2014 & \$ 14.0 \text { trillion } & \$ 14.0 \text { trillion } & 150 \\\hline 2015 & 14.5 \text { trillion } & 14.2 \text { trillion } & 152 \\\hline\end{array}$$
-Refer to Table 17-2.Consider the hypothetical information in the table above for potential real GDP,real GDP and the price level in 2014 and in 2015 if the Federal Reserve does not use monetary policy.If the Fed uses monetary policy successfully to keep real GDP at its potential level in 2015,which of the following will be higher than if the Fed had taken no action?

• A)real GDP and the unemployment rate
• B)real GDP and the inflation rate
• C)real GDP and potential GDP
• D)potential GDP and the inflation rate

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Definitions:

Sadomasochism

A paraphilia involving the receipt or infliction of pain or humiliation as a means of sexual pleasure.

Fetishes

Sexual preferences focused on non-human objects, specific body parts, or particular situations.

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A state in which there is discord between an individual's designated or biological gender and the gender they perceive themselves to be.

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Medical procedures that change one's physical sex to match their gender identity.