Suppose the following table illustrates the values of real and potential GDP and the price level, if the Reserve Bank of Australia (RBA)does not change their current policy to be more contractionary or expansionary. Suppose that the RBA uses an appropriate policy and is successful in keeping real GDP at its potential level in 2018.
State whether each of the following will be higher or lower than if the RBA had taken no action:
a.Real GDP.
b.Potential GDP.
c.The price level.
d.The unemployment rate.
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