In the fictional country of Vireland, the economy is produci…

In the fictional country of Vireland, the economy is producing 1,700 trillion dollars in 2028, while the potential output is 1,900 trillion dollars. Which kind of gap do we have, and should the Federal Reserve increase or decrease the money supply to close the gap?

In the fictional country of Valtoria, the economy is produci…

In the fictional country of Valtoria, the economy is producing 6,500 trillion dollars in 2035, while the potential output is 6,200 trillion dollars. Which type of gap does this create, and without government intervention, does the SRAS curve shift to the right or left to close the gap?

In the fictional country of Terland, the economy is producin…

In the fictional country of Terland, the economy is producing 2,400 trillion dollars in 2028, while the potential output is 1,900 trillion dollars. Which kind of gap do we have, and should the Federal Reserve increase or decrease the money supply to close the gap?