Table 27-4 -Refer to Table 27-4

question 53

Multiple Choice

Table 27-4
$$\begin{array} { | c | c | c | c | } \hline \text { Year } & \text { Potential Real GDP } & \text { Real GDP } & \text { Price Level } \\\hline 2016 & \$ 18.0 \text { trillion } & \$ 18.0 \text { trillion } & 150 \\\hline 2017 & 18.5 \text { trillion } & 18.8 \text { trillion } & 154 \\\hline\end{array}$$
-Refer to Table 27-4.Consider the hypothetical information in the table above for potential real GDP,real GDP,and the price level in 2016 and in 2017 if Congress and the president do not use fiscal policy.If Congress and the president use fiscal policy successfully to keep real GDP at its potential level in 2017,which of the following will be lower than if Congress and the president 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:

Cyclopentene

A cyclic alkene with a five-membered ring, characterized by the presence of a carbon-carbon double bond, making it reactive in chemical syntheses.

Hydrogenation

The chemical reaction where hydrogen is added to another compound, often used to convert unsaturated bonds to saturated ones in hydrocarbons.

Bredt's Rule

A principle stating that bridged bicyclic compounds cannot have a double bond at a bridgehead position unless one of the rings contains at least eight carbon atoms, due to stability issues.

Stable Diene

A type of organic compound with two double bonds that exhibits stability in its structure and reactivity.