Question: table [ [ Year , Potential Real GDP , Real GDP , Price Level ] , [ 2 0 1 8 , $ 1

\table[[Year,Potential Real GDP,Real GDP,Price Level],[2018,$18.0 trillion,$18.0 trillion,150],[2019,18.5 trillion,18.8 trillion,154]]
Consider the hypothetical information in the teble for potential real GDP, real GDP, and the price level in 2018 and in 2019 if Congress and the president do not use fiscal policy. If Congress and the president want to keep real GDP at its potential level in 2019, they should
A. conduct expansionary fiscal policy.
B. buy Treasury securities.
C. decrease the discount rate.
D. decrease govemment purchases.
\ table [ [ Year , Potential Real GDP , Real GDP

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!