Year Potential Real GDP Real GDP Price Level 2012 $14.2 trillion $14.2 trillion 154 $14.6 trillion 156 $14.8 trillion 2013 2.6 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. 96 4 Reok Air

Year Potential Real GDP Real GDP Price Level 2012 $14.2 trillion $14.2 trillion 154 $14.6 trillion 156 $14.8 trillion 2013 2.6 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. 96 4 Reok Air

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter22: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 12P

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