Table 18-2
$$\begin{array} { | c | c | c | c | }
\hline \text { Year } & \text { Potential Real GDP } & \text { Real GDP } & \text { Price Level } \
\hline 2013 & \$ 14.0 \text { trillion } & \$ 14.0 \text { trillion } & 150 \
\hline 2014 & 14.5 \text { trillion } & 14.8 \text { trillion } & 154 \
\hline
\end{array}$$
-Refer to Table 18-2.Consider the hypothetical information in the table above for potential real GDP,real GDP and the price level in 2013 and in 2014 if the Congress and the president do not use fiscal policy.If the Congress and the president want to keep real GDP at its potential level in 2014,they should

Question

Table 18-2
 $$\begin{array} { | c | c | c | c | } 
\hline \text { Year } & \text { Potential Real GDP } & \text { Real GDP } & \text { Price Level } \
\hline 2013 & \$ 14.0 \text { trillion } & \$ 14.0 \text { trillion } & 150 \
\hline 2014 & 14.5 \text { trillion } & 14.8 \text { trillion } & 154 \
\hline
\end{array}$$
-Refer to Table 18-2.Consider the hypothetical information in the table above for potential real GDP,real GDP and the price level in 2013 and in 2014 if the Congress and the president do not use fiscal policy.If the Congress and the president want to keep real GDP at its potential level in 2014,they should

Quizplus · Accepted Answer

To keep real GDP at its potential level, the government should decrease spending to reduce the actual GDP from $14.8 trillion to the potential $14.5 trillion.

Table 18-2 -Refer to Table 18-2