Table 17-2 -Refer to Table 17-2

question 251

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 uses monetary policy successfully to keep real GDP at its potential level in 2019,which of the following will be higher 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:

Haida Village

A settlement historically inhabited by the Haida, an indigenous people of the Pacific Northwest Coast of North America.

Totem Poles

Large wooden poles carved and painted with a series of symbols or figures, significant in various Indigenous cultures of the Pacific Northwest.

Queen Charlotte Island

An incorrect name for Haida Gwaii, an archipelago off the northern coast of British Columbia, Canada, known for its rich indigenous Haida culture.

Mask

A covering for the face, typically used in rituals, performances, or as part of a costume, that can hide or alter the wearer's identity.