Table 26-3 -Refer to Table 26-3

question 142

Multiple Choice

Table 26-3
$$\begin{array} { | l | l | l | c | } \hline \text { Year } & \text { Potential Real GDP } & { \text { Real GDP } } & \text { Price Level } \\\hline 2016 & \$ 18.0 \text { trillion } & \$ 18.0 \text { trillion } & 150 \\\hline 2017 & 18.5 \text { trillion } & 18.8 \text { trillion } & 154 \\\hline\end{array}$$
-Refer to Table 26-3.Consider the hypothetical information in the table above for potential real GDP,real GDP,and the price level in 2016 and in 2017 if the Federal Reserve does not use monetary policy.If the Fed wants to keep real GDP at its potential level in 2017,it should

• A)buy Treasury securities.
• B)sell Treasury securities.
• C)decrease the required reserve ratio.
• D)decrease income taxes.

---

Definitions:

Formal Authority

Refers to the power granted to an individual or a position through organizational structures and official job descriptions.

Mechanistic Designs

Organizational structures characterized by clear hierarchies, rigid departments, and strict adherence to rules, enhancing efficiency in stable environments.

Loose Structures

Organizational frameworks characterized by flexibility, informal communication, and adaptable roles, often in contrast to rigid, hierarchical structures.

Horizontal Form

An organizational structure where departments or units operate with a high degree of autonomy and communication is lateral, emphasizing collaboration and teamwork.