Page 1 of 2 O ZOOM + A real world problem faced by policymakers, forecasters, and businesses every day is how to judge the state of the economy. Consider the table below, showing hypothetical measures of real GDP for each quarter (three-month period) in the coming years, starting at a level of $25.0 trillion in 2023Q1 (the first quarter of 2023). Year Actual Potential Short-run Growth Rate Actual Output Y, Output Y, Y, - Y, Output (Y,) %AY 2023Q1 25.0 2023Q2 25.20 2023Q3 25.40 2023Q4 25.30 202401 25.20 2024Q2 25.15 202403 25.13 2024Q4 25.30 2024Q1 25.50 2025Q2 26.00 2025Q3 26.80 2025Q4 27.10 Now fill in the remaining columns by answering the following questions. (a) What is potential output in 2023Q1? There is no way to answer without a method to estimate potential. Assume that reports and analyses estimate potential to be $25.0 trillion in 20201, Q1. So go ahead and put $25.0 trillion in the first cell of the third column. (b) Assume potential output grows at a constant annual rate of 2.5% , and complete the re- mainder of the table. Hint: What is the growth rate in each quarter? (c) Comment on the state of the economy in each year? When does the economy enter a recession? When does the recession end? (For the purposes of answering this question you can define a recession as any time the economy is below potential. (d) How is your answer in part (c) related to the growth rate of actual output in the last column of the table