Consider the Hypothetical Information in the Following Table for Potential

question 121

Multiple Choice

Consider the hypothetical information in the following table for potential GDP,real GDP,and the price level in 2017 and in 2018 if the government does not use fiscal policy. $$\begin{array} { | c | c | c | c | } \hline \text { Year } & \text { Potential GDP } & \text { Real GDP } & \text { Price Level } \\\hline 2017 & \$ 1.5 \text { trillion } & \$ 1.5 \text { trillion } & 150 \\\hline 2018 & \$ 1.7 \text { trillion } & \$ 1.6 \text { trillion } & 152 \\\hline\end{array}$$ If the government wants to keep real GDP at its potential level in 2014,it should _________.

• A) decrease income taxes
• B) decrease government purchases
• C) decrease interest rates
• D) increase interest rates

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Definitions:

Lymphatic Trunks

Large lymphatic vessels that collect lymph from smaller lymphatic vessels and deliver it to the venous system.

Subclavian Veins

Major veins located under the clavicle that receive blood from the arm and drain into the superior vena cava.

Collecting Ducts

Channels within the kidneys that receive urine from the nephrons and transport it into the renal pelvis and ureters.

White Pulp

Lymphatic tissue within the spleen that functions in the immune response by producing and storing white blood cells.