Table 11.7
-Refer to Table 11.7.Suppose the table above illustrates the values of real and potential GDP and the price level if the Bank of Canada does not change its current policy to be more contractionary or expansionary.Suppose that the Bank of Canada uses an appropriate policy and is successful in keeping real GDP at potential in 2015.State whether each of the following will be higher or lower than if the Bank of Canada had taken no action:
a.real GDP
b.potential real GDP
c.the price level
d.the unemployment rate

Question

Table 11.7 
-Refer to Table 11.7.Suppose the table above illustrates the values of real and potential GDP and the price level if the Bank of Canada does not change its current policy to be more contractionary or expansionary.Suppose that the Bank of Canada uses an appropriate policy and is successful in keeping real GDP at potential in 2015.State whether each of the following will be higher or lower than if the Bank of Canada had taken no action:
a.real GDP
b.potential real GDP
c.the price level
d.the unemployment rate

Quizplus · Accepted Answer

The Answer of Table 11.7 
-Refer to Table 11.7.Suppose the table above illustrates the values of real and potential GDP and the price level if the Bank of Canada does not change its current policy to be more contractionary or expansionary.Suppose that the Bank of Canada uses an appropriate policy and is successful in keeping real GDP at potential in 2015.State whether each of the following will be higher or lower than if the Bank of Canada had taken no action:
a.real GDP
b.potential real GDP
c.the price level
d.the unemployment rate

Table 11.7 -Refer to Table 11.7.Suppose the Table Above Illustrates the Values