Year 2014 2015 Potential Real GDP $14.0 trillion 14.5 trillion Real GDP $14.0 trillion 14.2 trillion O A. potential GDP and the inflation rate B. real GDP and the inflation rate O C. real GDP and the unemployment rate D. real GDP and potential GDP Price Level 150 152 Consider the hypothetical information in the table above for potential real GDP, real GDP and the price level in 2014 and in 2015 if the Federal Reserve does not use monetary policy. If the Fed uses monetary policy successfully to keep real GDP at its potential level in 2015, which of the following will be higher than if the Fed had taken no action?

Year 2014 2015 Potential Real GDP $14.0 trillion 14.5 trillion Real GDP $14.0 trillion 14.2 trillion O A. potential GDP and the inflation rate B. real GDP and the inflation rate O C. real GDP and the unemployment rate D. real GDP and potential GDP Price Level 150 152 Consider the hypothetical information in the table above for potential real GDP, real GDP and the price level in 2014 and in 2015 if the Federal Reserve does not use monetary policy. If the Fed uses monetary policy successfully to keep real GDP at its potential level in 2015, which of the following will be higher than if the Fed had taken no action?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: Money Growth And Intlation

Section: Chapter Questions

Problem 6PA

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