Table 27-3 -Refer to Table 27-3

question 262

Multiple Choice

Table 27-3
$$\begin{array} { | c | c | c | c | } \hline \text { Year } & \text { Potential Real GDP } & \text { Real GDP } & \text { Price Level } \\\hline 2016 & \$ 18.0 \text { trillion } & \$ 18.0 \text { trillion } & 150 \\\hline 2017 & 18.5 \text { trillion } & 18.2 \text { trillion } & 152 \\\hline\end{array}$$
-Refer to Table 27-3.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 higher 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:

Erikson

A developmental psychologist known for his theory on the psychosocial development of human beings, outlining eight stages from infancy to adulthood.

Old Age

A stage of life usually associated with retirement, slowing physical and mental faculties, and changes in social roles, typically considered to start at 65 years old.

Superego

In psychoanalytic theory, the part of a person's mind that acts as a self-critical conscience, reflecting social standards learned from parents and teachers.

Guilty Feelings

Relates to emotions of remorse or regret typically associated with the belief of having done something wrong.