What actions can the government take to bring real gdp

Reference no: EM131022969

Use the graph to answer the following questions.

a. If the government takes no policy actions, what will be the values of real GDP and the price level in 2017?

b. What actions can the government take to bring real GDP to its potential level in 2017?

c. If the government takes no policy actions, what will the inflation rate be in 2017? If the government uses fiscal policy to keep real GDP at its potential level, what will the inflation rate be in 2017?

Reference no: EM131022969

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