Table 26-2 -Refer to Table 26-2.Consider the Hypothetical Information in the Table

question 83

Multiple Choice

Table 26-2

-Refer to Table 26-2.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 lower 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:

Virtual Teams

Teams of people who work together from different geographic locations and rely on communication technology such as email, video or voice conferencing services to collaborate.

Self-managed

A system where employees or teams operate autonomously, making decisions without direct supervision.

Cross-functional

Refers to processes or activities that involve multiple departments or areas of expertise within an organization to achieve a common goal.

Attractive Outcomes

Results or consequences that are desired, appealing, or beneficial to an individual or group.