Table 17-4
$$\begin{array} { | c | c | c | c | }
\hline \text { Year } & \text { Potential Real GDP } & \text { Real GDP } & \text { Price Level } \
\hline 2014 & \$ 15.1 \text { trillion } & \$ 15.1 \text { trillion } & 150 \
\hline 2015 & 15.4 \text { trillion } & 15.3 \text { trillion } & 153 \
\hline
\end{array}$$
-Refer to Table 17-4.Suppose the following table illustrates the values of real and potential GDP and the price level,if the Fed does not vote to change their current policy to be more contractionary or expansionary.If the Fed wants to keep real GDP at its potential level in 2015,should the Fed use a contractionary or expansionary policy? How should it conduct open market operations to achieve its goal?

Question

Table 17-4
 $$\begin{array} { | c | c | c | c | } 
\hline \text { Year } & \text { Potential Real GDP } & \text { Real GDP } & \text { Price Level } \
\hline 2014 & \$ 15.1 \text { trillion } & \$ 15.1 \text { trillion } & 150 \
\hline 2015 & 15.4 \text { trillion } & 15.3 \text { trillion } & 153 \
\hline
\end{array}$$
-Refer to Table 17-4.Suppose the following table illustrates the values of real and potential GDP and the price level,if the Fed does not vote to change their current policy to be more contractionary or expansionary.If the Fed wants to keep real GDP at its potential level in 2015,should the Fed use a contractionary or expansionary policy? How should it conduct open market operations to achieve its goal?

Quizplus · Accepted Answer

The Answer of Table 17-4
 $$\begin{array} { | c | c | c | c | } 
\hline \text { Year } & \text { Potential Real GDP } & \text { Real GDP } & \text { Price Level } \
\hline 2014 & \$ 15.1 \text { trillion } & \$ 15.1 \text { trillion } & 150 \
\hline 2015 & 15.4 \text { trillion } & 15.3 \text { trillion } & 153 \
\hline
\end{array}$$
-Refer to Table 17-4.Suppose the following table illustrates the values of real and potential GDP and the price level,if the Fed does not vote to change their current policy to be more contractionary or expansionary.If the Fed wants to keep real GDP at its potential level in 2015,should the Fed use a contractionary or expansionary policy? How should it conduct open market operations to achieve its goal?

Table 17-4 -Refer to Table 17-4