Table 11.8 -Refer to Table 11.8.Suppose the Table Above Illustrates the Values

Essay

Table 11.8
-Refer to Table 11.8.Suppose the table above illustrates the values of real and potential GDP and the price level if the Bank of Canada does not change its current policy to be more contractionary or expansionary.If the Bank of Canada wants to keep real GDP at its potential level in 2015, should the Bank of Canada use a contractionary or expansionary policy? Should it raise or lower its interest rate target? How should it conduct open market operations to achieve its goal?