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:

Aversive Event

An unpleasant or harmful event or experience that is avoided or minimized through learning or behavior changes.

Control Group

In experimental research, a group of subjects that does not receive the experimental treatment and is used as a benchmark to measure how the other tested subjects do.

Equipotentiality

A concept in neurology and psychology proposing that one part of the brain can take over the functions of another part if it gets damaged, emphasizing the brain's adaptability.

Belongness

is the human emotional need to be an accepted member of a group, whether it is friends, family, co-workers, or any other group.