Table 26-7
$$\begin{array} { | l | l | l | c | }
\hline \text { Year } & \text { Potential Real GDP } & \text { Real GDP } & \text { Price Level } \
\hline 2012 & \$ 14.2 \text { trillion } & \$ 14.2 \text { trillion } & 154 \
\hline 2013 & 14.8 \text { trillion } & 14.6 \text { trillion } & 156 \
\hline
\end{array}$$
-Refer to Table 26-7.Suppose the table above illustrates the values of real and potential GDP and the price level if the Fed did not vote to change their current policy to be more contractionary or expansionary.Suppose that the Fed used an appropriate policy and was successful in keeping real GDP at potential in 2013.Draw an aggregate demand and supply curve to illustrate your answer.

Question

Table 26-7
 $$\begin{array} { | l | l | l | c | } 
\hline \text { Year } & \text { Potential Real GDP } & \text { Real GDP } & \text { Price Level } \
\hline 2012 & \$ 14.2 \text { trillion } & \$ 14.2 \text { trillion } & 154 \
\hline 2013 & 14.8 \text { trillion } & 14.6 \text { trillion } & 156 \
\hline
\end{array}$$
-Refer to Table 26-7.Suppose the table above illustrates the values of real and potential GDP and the price level if the Fed did not vote to change their current policy to be more contractionary or expansionary.Suppose that the Fed used an appropriate policy and was successful in keeping real GDP at potential in 2013.Draw an aggregate demand and supply curve to illustrate your answer.

Quizplus · Accepted Answer

The Answer of Table 26-7
 $$\begin{array} { | l | l | l | c | } 
\hline \text { Year } & \text { Potential Real GDP } & \text { Real GDP } & \text { Price Level } \
\hline 2012 & \$ 14.2 \text { trillion } & \$ 14.2 \text { trillion } & 154 \
\hline 2013 & 14.8 \text { trillion } & 14.6 \text { trillion } & 156 \
\hline
\end{array}$$
-Refer to Table 26-7.Suppose the table above illustrates the values of real and potential GDP and the price level if the Fed did not vote to change their current policy to be more contractionary or expansionary.Suppose that the Fed used an appropriate policy and was successful in keeping real GDP at potential in 2013.Draw an aggregate demand and supply curve to illustrate your answer.

Table 26-7 -Refer to Table 26-7