Table 18-3 -Refer to Table 18-3

question 255

Multiple Choice

Table 18-3
$$\begin{array} { | c | c | c | c | } \hline \text { Year } & \text { Potential Real GDP } & \text { Real GDP } & \text { Price Level } \\\hline 2013 & \$ 14.0 \text { trillion } & \$ 14.0 \text { trillion } & 150 \\\hline 2014 & 14.5 \text { trillion } & 14.2 \text { trillion } & 152 \\\hline\end{array}$$
-Refer to Table 18-3.Consider the hypothetical information in the table above for potential real GDP,real GDP and the price level in 2013 and in 2014 if the Congress and the president do not use fiscal policy.If the Congress and the president use fiscal policy successfully to keep real GDP at its potential level in 2014,which of the following will be higher than if the Congress and the president 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