Refer to Table 16.2 for the Following Questions

question 131

Multiple Choice

Refer to Table 16.2 for the following questions.
Table 16.2

-Consider the hypothetical information in Table 16.2 for potential GDP,real GDP and the price level in 2012 and in 2013 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 2013,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