Table 17-7 -Refer to Table 17-7

question 88

Essay

Table 17-7
$$\begin{array} { | c | c | c | c | } \hline \text { Year } & \text { Potential Real GDP } & \text { Real GDP } & \text { Price Level } \\\hline 2012 & \$ 14.2 \text { trillion } & \$ 14.2 \text { trillion } & 154 \\\hline 2013 & 14.8 \text { trillion } & 14.6 \text { trillion } & 156 \\\hline\end{array}$$
-Refer to Table 17-7.Suppose the table above illustrates the values of real and potential GDP and the price level,if the Fed did not vote to change their current policy to be more contractionary or expansionary.Suppose that the Fed used an appropriate policy and was successful in keeping real GDP at potential in 2013.Draw an aggregate demand and supply curve to illustrate your answer.

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Definitions:

Hyperinsulinemia

A condition characterized by excess levels of insulin circulating in the blood relative to glucose levels, often a precursor to diabetes.

Obesity

A medical condition characterized by excessive body fat that presents a risk to health.

Lean Body Mass

The mass of the body minus the fat content; it includes muscles, bones, organs, and water.

Anorexia Nervosa

A psychological eating disorder characterized by an extreme fear of gaining weight, leading to severe restriction of food intake and malnourishment.