Problem 10. Read the article by Olivier Blanchard titled "In defense of concerns over the $1.9 trillion relief plan" posted at the following url https://www.piie.com/blogs/ realtime-economic-issues-watch/defense-concerns-over-19-trillion-relief-plan and answer the following questions (a) Output gap, that Blanchard mentions in his article, is what we call "short-run output" Yt in the textbook. What is the short-run output in 2020, as imputed by Blanchard? (b) In dollar terms, what was the gap between actual output and potential output in 2020? (c) As percentage of potential output, how large is $2.8 trillion? (d) Assume interest rates are constant. Use the IS-curve with a multiplier from equation 11.16 in the textbook to answer this question. If the economy is at the short-run output that Blanchard computes in part a), and the IS-graph multiplier is x = 0.3, what will be the effect of $2.8 trillion stimulus on short-run output? Provide a numerical estimate. (e) if v = 1/3 (slope of AS curve), what will be the effect on short-run output and inflation, using the AS-AD framework. You may use the AD curve derived in Question 1d) to answer this question. (f) Do you agree with Blanchard's assessment of the inflation risks posed by Biden's stim- ulus plan? Explain briefly why or why not.