Table 17-2 -Refer to Table 17-2

question 46

Multiple Choice

Table 17-2
$\begin{array}{|c|l|l|l|}\hline \text { Year } & \text { Potential Real GDP } & {\text { Real GDP }} & \text { Price Level } \\\hline 2018 & \$ 18.0 \text { trillion } & \$ 18.0 \text { trillion } & 150 \\\hline 2019 & 18.5 \text { trillion } & 18.2 \text { trillion } & 152 \\\hline\end{array}$
-Refer to Table 17-2.Consider the hypothetical information in the table above for potential real GDP,real GDP,and the price level in 2018 and in 2019 if the Federal Reserve does not use monetary policy.If the Fed wants to keep real GDP at its potential level in 2019,it should

• A) buy Treasury securities.
• B) sell Treasury securities.
• C) increase the required reserve ratio.
• D) increase income taxes.

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Definitions:

Online Sessions

Interactive engagements or meetings conducted over the internet, often involving educational, training, or professional collaboration activities.

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, comparing its gains to its cost.

Cost Of Living Index

A theoretical price index that measures the relative cost of living over time or regions, including prices of goods and services required for maintaining an average level standard of living.

Productivity Index

A measure used to analyze the efficiency of production or the output produced relative to input used.