The graph to the right illustrates the possible future equilibrium in the economy depending on whether the Bank of Canada would perform policy or not.

Part $2$

a$.$ If the Bank of Canada does not take any policy$$ action, in $2025$ the level of real GDP will be $$$

$$

enter your response here trillion. $($Round your response to one decimal$$ place.$)$

Part $3$

The price level will be

$$

enter your response here. $($Enter your response as an$$ integer.$)$

Part $4$

b$.$ If the Bank of Canada wants to keep real GDP at its potential level in$2025,$ it should use

$$

an expansionary

a contractionary

policy.

Part $5$

This means that the Bank of Canada should be

$$

selling

buying

Canada bonds.

Part $6$

c$.$ If the Bank of Canada takes no policy$$ action, the inflation rate in $2025$ will be

$$

enter your response here$\%.($Round your response to one decimal$$ place.$)$

Part $7$

If the Bank of Canada uses monetary policy to keep real GDP at its$$ full$-$employment level, the inflation rate in $2025$ will be

$$

enter your response here$\%.($Round your response to one decimal place.$)$