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) potential GDP and the inflation rate
C) real GDP and the inflation rate D) real GDP and potential GDP
C
You might also like to view...
Which of the following is true of the paradox of thrift?
a) The paradox of thrift occurs when investment is not related to income. b) The paradox of thrift occurs when households intend to save less. c) The paradox of thrift causes consumers to save less. d) The paradox of thrift occurs when households intend to consume more
After the price of milk increases, Susan buys more eggs and less hotdogs. For Susan
A) milk, eggs, and hotdogs are all complements. B) milk and eggs are complements, and milk and hotdogs are substitutes. C) milk and eggs are substitutes, and milk and hotdogs are complements. D) milk, eggs, and hotdogs are all substitutes.