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:

Split Stems

A method in stem-and-leaf plots where stems are divided into two or more parts to spread out the data for a clearer representation.

Stem-and-Leaf Display

A stem-and-leaf display is a graphical method for displaying quantitative data, allowing for the observation of the data’s shape and distribution by organizing numbers based on their leading digits (stems) and trailing digits (leaves).

Midterm Grades

Grades assigned to students midway through an academic term to evaluate their progress and performance in a course up to that point.

Split Stems

A technique in data display where stem units in stem-and-leaf plots are divided to provide a more refined view of data distribution.