Between 1995 and 20o0, the U.S. economy experienced surprisingly rapid growth, termed the "New Economy" by some observers. Was this a change in potential output or short-run output? Alan Greenspan, Fed chairman, argued it was a change in potential and did not raise interest rates to slow the economy. At the time, many economists thought this was a mistake. Look back at the data on inflation in Figure 12.9 in your book to form your own opinion. Write a brief memo, a few paragraphs (less than a page), either defending or criticizing Greenspan's position. Be sure to use the graphs of the short-run model to make your case, especially the Phillips Curve.