Be sure to show all your work, including math steps!

Suppose long-run potential GDP is $10 trillion in 2023, and actual measured GDP in 2023 turns out to be $9.5 trillion.

(a) Calculate the short-run output as defined in our course, . (b) Is the economy considered in recession in 2023? Explain why or why not. (c) Briefly explain what the Fed can do to bring short-run GDP to the potential level in 2024,

using the short-run model we studied in the second half of the course.