Suppose the following table illustrates the values of real and potential GDP if the Reserve Bank of Australia (RBA)does not change its current monetary policy to be more contractionary or expansionary.
If the RBA wants to keep real GDP at its potential level in 2014,should the RBA use a contractionary or expansionary policy? How should it conduct open market operations to achieve its goal?

Question

Suppose the following table illustrates the values of real and potential GDP if the Reserve Bank of Australia (RBA)does not change its current monetary policy to be more contractionary or expansionary.

If the RBA wants to keep real GDP at its potential level in 2014,should the RBA use a contractionary or expansionary policy? How should it conduct open market operations to achieve its goal?

Quizplus · Accepted Answer

The Answer of Suppose the following table illustrates the values of real and potential GDP if the Reserve Bank of Australia (RBA)does not change its current monetary policy to be more contractionary or expansionary. If the RBA wants to keep real GDP at its potential level in 2014,should the RBA use a contractionary or expansionary policy? How should it conduct open market operations to achieve its goal?

Suppose the Following Table Illustrates the Values of Real and Potential