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 uses monetary policy successfully to keep real GDP at its potential level in 2017, which of the following will be higher than if the Fed had taken no action?
A) Real GDP and then inflation rate
B) real GDP and the unemployment rate
C) real GDP and potential GDP
D) potential GDP and the inflation rate
A
Economics
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Explain the difference between correlation and causation
What will be an ideal response?
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Which of the following is true about per capita income?
A) it is an approximate measure of how rich or poor a country is B) it is the same as income per worker only if everyone in the economy is assumed to work C) it is the product of TFP and capital per worker only if everyone in the economy is assumed to work D) all of the above E) none of the above
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