The Fed is able to use monetary policy to keep real GDP exactly at its potential level.

Name: The Fed is able to use monetary policy to keep real GDP exactly at its potential level.
Brand: Quizplus
Rating: 4.8 (60 reviews)

Question

Quizplus · Accepted Answer

The Fed is able to influence real GDP through monetary policy, but it cannot perfectly control it to be exactly at its potential level. There are other factors that influence real GDP as well, such as fiscal policy, international trade, technological advancements, and changes in consumer behavior.

The Fed Is Able to Use Monetary Policy to Keep