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Year Potential Real GDP Real GDP 2016 $18.2 trillion $18.2 trillion 2017 18.6 trillion 18.4 trillion The hypothetical information in the table shows what the
Year Potential Real GDP Real GDP 2016 $18.2 trillion $18.2 trillion 2017 18.6 trillion 18.4 trillion The hypothetical information in the table shows what the values for US real GDP will be in 2017 if the Fed does not use monetary policy. Which of the following policies makes sense if the Fed wants to keep real GDP at its potential level in 2017? None of the above. The Fed should raise the required reserve ratio. The Fed should lower the target for the federal funds rate. The Fed should sell Treasury securities
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