Consider the hypothetical information in the following table for potential GDP,real GDP,and the price level in 2016 and in 2017 if the government does not use fiscal policy. $$\begin{array} { | c | c | c | c | }
\hline \text { Year } & \text { Potential GDP } & \text { Real GDP } & \text { Price Level } \
\hline 2016 & \$ 1.5 \text { trillion } & \$ 1.5 \text { trillion } & 150 \
\hline 2017 & \$ 1.7 \text { trillion } & \$ 1.8 \text { trillion } & 154 \
\hline
\end{array}$$ If the government wants control inflation while keeping real GDP at its potential level in 2017,it should ________.

Question

Consider the hypothetical information in the following table for potential GDP,real GDP,and the price level in 2016 and in 2017 if the government does not use fiscal policy. $$\begin{array} { | c | c | c | c | } 
\hline \text { Year } & \text { Potential GDP } & \text { Real GDP } & \text { Price Level } \
\hline 2016 & \$ 1.5 \text { trillion } & \$ 1.5 \text { trillion } & 150 \
\hline 2017 & \$ 1.7 \text { trillion } & \$ 1.8 \text { trillion } & 154 \
\hline
\end{array}$$ If the government wants control inflation while keeping real GDP at its potential level in 2017,it should ________.

Quizplus · Accepted Answer

The Answer of Consider the hypothetical information in the following table for potential GDP,real GDP,and the price level in 2016 and in 2017 if the government does not use fiscal policy. $$\begin{array} { | c | c | c | c | } 
\hline \text { Year } & \text { Potential GDP } & \text { Real GDP } & \text { Price Level } \
\hline 2016 & \$ 1.5 \text { trillion } & \$ 1.5 \text { trillion } & 150 \
\hline 2017 & \$ 1.7 \text { trillion } & \$ 1.8 \text { trillion } & 154 \
\hline
\end{array}$$ If the government wants control inflation while keeping real GDP at its potential level in 2017,it should ________.

Consider the Hypothetical Information in the Following Table for Potential