Consider the Hypothetical Information in Table 17

question 90

Multiple Choice

Consider the hypothetical information in Table 17.2 for potential GDP,real GDP and the price level in 2016 and in 2017 if the Reserve Bank of Australia does not use monetary policy.If the RBA uses monetary policy successfully to keep real GDP at its potential level in 2017,which of the following will be lower than if the RBA 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

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Definitions:

Bank Credit Cards

Financial instruments issued by banks allowing cardholders to borrow funds up to a pre-approved limit for purchases or cash advances.

Credit Card Expense

Costs incurred from using a credit card, including interest charges, annual fees, and transaction fees.

Sales

The total amount earned from selling goods or services before any costs or expenses are deducted.

Trade Discount

A reduction in the listed price of goods or services offered by sellers to buyers in the business-to-business market, often determined by quantity purchased or early payment.