Table 18-1 -Refer to Table 18-1

question 103

Multiple Choice

Table 18-1
$\begin{array}{|c|l|l|c|}\hline \text { Year } & \text { Potential Real GDP } & \text { Real GDP } & \text { Price Level } \\\hline 2018 & \$ 18.0 \text { trillion } & \$ 18.0 \text { trillion } & 150 \\\hline 2019 & 18.5 \text { trillion } & 18.2 \text { trillion } & 152 \\\hline\end{array}$
-Refer to Table 18-1.Consider the hypothetical information in the table above for potential real GDP,real GDP,and the price level in 2018 and in 2019 if Congress and the president do not use fiscal policy.If Congress and the president want to keep real GDP at its potential level in 2019,they should

• A) decrease income taxes.
• B) decrease government purchases.
• C) decrease the money supply.
• D) increase the level of interest rates.

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Definitions:

Symmetric

A characteristic of shapes or distributions that exhibit mirror-like similarity on either side of a central point or axis.

Histogram

A graphical representation of the distribution of numerical data, using bars of different heights to show the frequency of data in successive intervals.

Vertical Line

A vertical line is a straight line that goes up and down without any tilt, perfectly perpendicular to a horizontal plane, often used in geometric contexts and graphing.

Frequency Distribution

An arrangement of data that shows how often each different value occurs in a dataset.