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Consider the hypothetical information in Table below for potential GDP, real GDP and the price level in 2013 if the Reserve Bank of Australia does
Consider the hypothetical information in Table below for potential GDP, real GDP and the price level in 2013 if the Reserve Bank of Australia does not use monetary policy. If the RBA uses monetary policy successfully to keep real GDP at its potential level in 2013, then: Year Potential GDP Real GDP Price Level Unemployment rate 2013 $1.5 trillion $1.8 trillion 152 5% The price level will be lower than 152 and the unemployment rate will be lower than 5%. The price level will be lower than 152 and the unemployment rate will be higher than 5%. The price level will be higher than 152 and the unemployment rate will be higher than 5%. The price level will be higher than 152 and the unemployment rate will be lower than 5%. The price level will not be affected and the unemployment rate will be higher than 5%
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