Table 16-3 Year 2020 2021 Potential Real GDP $18.0 trillion 18.5 trillion Real GDP $18.0 trillion Price Level 150 18.2 trillion 152 Refer to Table 16-3. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2020 and in 2021 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 2021, which of the following will be higher than if Congress and the president had taken no action? real GDP and the unemployment rate potential GDP and the inflation rate real GDP and the inflation rate real GDP and potential GDP
Table 16-3 Year 2020 2021 Potential Real GDP $18.0 trillion 18.5 trillion Real GDP $18.0 trillion Price Level 150 18.2 trillion 152 Refer to Table 16-3. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2020 and in 2021 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 2021, which of the following will be higher than if Congress and the president had taken no action? real GDP and the unemployment rate potential GDP and the inflation rate real GDP and the inflation rate real GDP and potential GDP
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Table 16-3
Year
2020
2021
Potential Real GDP
$18.0 trillion
18.5 trillion
Real GDP
$18.0 trillion
Price Level
150
18.2 trillion
152
Refer to Table 16-3. Consider the hypothetical information in the table above for potential real GDP, real
GDP, and the price level in 2020 and in 2021 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 2021, which
of the following will be higher than if Congress and the president had taken no action?
real GDP and the unemployment rate
potential GDP and the inflation rate
real GDP and the inflation rate
real GDP and potential GDP
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