Question 1 (8 points) Consider the following situation: actual GDP is counted to be 1.8% below Potential; the actual employment rate is counted to be 6% bellow Full employment; inflation is thought to be about 2.1%. Given these economic conditions answer the following questions: a) name the steps the Federal Reserve will be taking right now b) name the policy the Federal Reserve will be implementing c) state clearly what the Federal Reserve should be concerned about in the imediate future after the policy in (b) has been implemented? d) what steps, then, the Federal Reserve should be taken - name the steps to handle the concerns in (c)