Question: Refer to the table below to answer the following question. Year Potential GDP Real GDP Price Level Year 1 $1.5 trillion $1.5 trillion 150 Year

 Refer to the table below to answer the following question. Year

Refer to the table below to answer the following question. Year Potential GDP Real GDP Price Level Year 1 $1.5 trillion $1.5 trillion 150 Year 2 $1.6 trillion $1.52 trillion 152 Consider the hypothetical information in the table for potential GDP, real GDP and the price level in Year 1 and in Year 2 if the Reserve Bank of Australia does not use monetary policy. If the Reserve Bank of Australia wants to keep real GDP at its potential level in Year 2, it should: O a. increase income taxes. O b. sell bonds O c. increase interest rates. O d. buy bonds

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