Refer to Table 27-3. Consider the hypothetical information in the ...

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Refer to Table 27-3. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if Congress and the president do not use fiscal policy.
 
  If Congress and the president use fiscal policy successfully to keep real GDP at its potential level in 2017, which of the following will be higher than if Congress and the president had taken no action?
  A) real GDP and the unemployment rate B) potential GDP and the inflation rate
  C) real GDP and the inflation rate D) real GDP and potential GDP

Question 2

The recession of 2007-2009 decreased the demand for imports in Japan, which caused the ________ curve for the yen to shift to the ________, increasing the exchange rate and the value of the yen.
 
  A) demand; left B) supply; right C) supply; left D) demand; right

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Answer to Question 1

C

Answer to Question 2

C