Table 17-5 -Refer to Table 17-5

question 238

Essay

Table 17-5
$\begin{array}{|c|l|l|l|}\hline \text { Year } & \text { Potential Real GDP } & {\text { Real GDP }} & \text { Price Level } \\\hline 2018 & \$ 18.4 \text { trillion } & \$ 18.4 \text { trillion } & 144 \\\hline 2019 & 18.7 \text { trillion } & 18.5 \text { trillion } & 146 \\\hline\end{array}$
-Refer to Table 17-5.Suppose the table above illustrates the values of real and potential GDP and the price level if the Fed does not vote to change their current policy to be more contractionary or expansionary.Suppose that the Fed uses an appropriate policy and is successful in keeping real GDP at potential in 2019.State whether each of the following will be higher or lower than if the Fed had taken no action:
a.Real GDP
b.Potential real GDP
c.The price level
d.The unemployment rate

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