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Table 12.3 -Refer to Table 12.3.Consider the Hypothetical Information in the Table

Question 62

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Table 12.3 Table 12.3 -Refer to Table 12.3.Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2017 and in 2018 if the federal government does not use fiscal policy.If the federal government wants to keep real GDP at its potential level in 2018, it should A) buy Government of Canada bonds. B) conduct expansionary fiscal policy. C) decrease government purchases. D) decrease the discount rate. E) increase infrastructure investment.
-Refer to Table 12.3.Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2017 and in 2018 if the federal government does not use fiscal policy.If the federal government wants to keep real GDP at its potential level in 2018, it should


A) buy Government of Canada bonds.
B) conduct expansionary fiscal policy.
C) decrease government purchases.
D) decrease the discount rate.
E) increase infrastructure investment.

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