Table 18-4 -Refer to Table 18-4

question 176

Multiple Choice

Table 18-4
$$\begin{array} { | c | c | c | c | } \hline \text { Year } & \text { Potential Real GDP } & \text { Real GDP } & \text { Price Level } \\\hline 2013 & \$ 14.0 \text { trillion } & \$ 14.0 \text { trillion } & 150 \\\hline 2014 & 14.5 \text { trillion } & 14.8 \text { trillion } & 154 \\\hline\end{array}$$
-Refer to Table 18-4.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 lower 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

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Definitions:

Carl Jung

A psychoanalyst and psychiatrist from Switzerland, the founder of analytical psychology, which stresses the value of one's own psyche and their journey towards being whole.

Hypnosis

A state of focused attention, reduced peripheral awareness, and an enhanced capacity for response to suggestion.

Projective Tests

Psychological assessments where individuals respond to ambiguous stimuli, revealing hidden emotions and internal conflicts.

Free Association

A psychoanalytic technique in which a patient says whatever comes to mind without censorship, used to uncover unconscious thoughts and feelings.