Table 27-1 -Refer to Table 27-1

question 52

Multiple Choice

Table 27-1
$$\begin{array} { | c | l | l | c | } \hline \text { Year } & \text { Potential Real GDP } & \text { Real GDP } & \text { Price Level } \\\hline 2016 & \$ 18.0 \text { trillion } & \$ 18.0 \text { trillion } & 150 \\\hline 2017 & 18.5 \text { trillion } & 18.2 \text { trillion } & 152 \\\hline\end{array}$$
-Refer to Table 27-1.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 want to keep real GDP at its potential level in 2017,they should

• A)decrease income taxes.
• B)decrease government purchases.
• C)decrease the money supply.
• D)increase the level of interest rates.

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