Table 18-4 -Refer to Table 18-4

question 261

Multiple Choice

Table 18-4
$\begin{array}{|c|c|c|c|}\hline \text { Year } & \text { Potential Real GDP } & \text { Real GDP } & \text { Price Level } \\\hline 2018 & \$ 18.0 \text { trillion } & \$ 18.0 \text { trillion } & 150 \\\hline 2019 & 18.5 \text { trillion } & 18.8 \text { trillion } & 154 \\\hline\end{array}$
-Refer to Table 18-4.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 use fiscal policy successfully to keep real GDP at its potential level in 2019,which of the following will be lower than if Congress and the president 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

Appreciate the importance of glial cells in the nervous system.

Understand the electrochemical process of neural impulse transmission.

Comprehend how action potentials are generated and propagated.

Recognize the factors influencing neurotransmitter activity and their effects on postsynaptic neurons.

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Definitions:

Demand Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with elasticity greater than one indicating a high response to price changes.

Revenue-Maximizing

The strategy of setting prices and production levels to achieve the highest possible revenue, not necessarily leading to the highest profit.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, opposite to normal goods.

Income Elasticity

A measure of how much the quantity demanded of a good responds to a change in consumers' income, holding all other factors constant.