Refer to Table 16.1 for the Following Question

question 42

Multiple Choice

Refer to Table 16.1 for the following question.
Table 16.1

-Refer to Table 16.1.Consider the hypothetical information in the table 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 Reserve Bank of Australia wants to keep real GDP at its potential level in 2013,it should

• A) buy government securities.
• B) sell government securities.
• C) increase interest rates.
• D) increase income taxes.

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Definitions:

Internal Causes

refer to factors within an individual, such as personal beliefs or emotions, that influence their behavior or actions.

External Causes

Factors outside an individual's or organization's control that affect outcomes or conditions, often contrasted with internal causes.

Stereotyping

The act of categorizing individuals into specific groups based on preconceived notions or characteristics, often leading to biased judgments and actions.

Prejudice

A preconceived opinion or judgment towards people or things, often based on stereotypes rather than actual experience or knowledge.