Table 11.4 -Refer to Table 11.4.Consider the Hypothetical Information in the Table

question 135

Multiple Choice

Table 11.4
-Refer to Table 11.4.Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2017 and in 2018 if the Bank of Canada does not use monetary policy.If the Bank of Canada uses monetary policy successfully to keep real GDP at its potential level in 2018, which of the following will be lower than if the Bank of Canada 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
• E)the employment population ratio and potential GDP

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