Question: need help Consider the following table: Year Potential GDP Real GDP Price Level 2012 $14.7 trillion $14.7 trillion 110 2013 $15.3 trillion $15.4 trillion 114
need help

Consider the following table: Year Potential GDP Real GDP Price Level 2012 $14.7 trillion $14.7 trillion 110 2013 $15.3 trillion $15.4 trillion 114 What can we expect from the Federal Reserve Bank if it seeks to move the economy in the direction of long-run macroeconomic equilibrium? O A. The Fed will pursue an expansionary monetary policy. O B. The Fed will pursue a contractionary fiscal policy. C. The Fed will pursue a contractionary monetary policy. O D. The Fed will pursue an expansionary fiscal policy. If the Fed's policy is successful, what is the effect on the following indicators? Actual real GDP: Potential real GDP: Price level: Unemployment
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
