Answer it if you are 100% sure and give proper explanation otherwise I'll downvote you.

Question 18

Suppose the economy is currently experiencing a recession. In response, the central bank would most likely pursue _____ monetary policy in order to shift to the right.

expansionary; aggregate demand

contractionary; aggregate supply

contractionary; aggregate demand

expansionary; aggregate supply

Question 19

In the Keynesian zone of the SRAS curve, a rightward shift of aggregate demand would most likely cause _____.

an increase in real GDP coupled with a large increase in prices

a decrease in real GDP but have little effect on prices

a decrease in real GDP coupled with a large decrease in prices

an increase in real GDP but have little effect on prices

Question 20

Use the following table to calculate real GDP for 1960, 2005, 2010, and 2020. Express your answers numerically. NOTE: for partial credit, show your work.

Year Nominal GDP (billions of dollars) GDP Deflator (1990 = 100)

1980 1,210 95

1990 1,845 100

2000 2,906 110

2010 3,771 125

Real GDP in 1980 = $_____ billion.

Real GDP in 1990 = $_____ billion.

Real GDP in 2000 = $_____ billion.

Real GDP in 2010 = $_____ billion.