Table 17-3 -Refer to Table 17-3

question 39

Multiple Choice

Table 17-3
$\begin{array}{|c|l|l|c|}\hline \text { Year } & \text { Potential Real GDP } & \text { Real GDP } & \text { Price Level } \\\hline 2018 & \$ 18.0 \text { trillion } & \$ 18.0 \text { trillion } & 150 \\\hline 2019 & 18.5 \text { trillion } & 18.8 \text { trillion } & 154 \\\hline\end{array}$
-Refer to Table 17-3.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 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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