Refer to Figure 26-12. In the dynamic AD-AS model, the economy is at point A in year 1 and is expected to go to point B in year 2, and the Federal Reserve pursues policy. This will result in
A) real GDP levels higher than what would occur if no policy had been pursued.
B) inflation rates higher than what would occur if no policy had been pursued.
C) potential real GDP levels lower than what would occur if no policy had been pursued.
D) unemployment rates higher than what would occur if no policy had been pursued.
Question 2
Refer to Table 19-30. Based on the table above, what is personal income for this economy?
A) 1,950 billion B) 2,030 billion C) 2,450 billion D) 5,130 billion
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