Use the following to answer questions:
Figure: Output Gap 
-(Figure: Output Gap) Refer to Figure: Output Gap. If the economy is producing at Y2, then it has a(n) _____ gap, as _____ real GDP exceeds _____ real GDP, and the Federal Reserve should use _____ monetary policy.
Definitions:
Q6: If banks were required to keep 100%
Q16: Purchases and sales of short-term Treasury bills
Q56: Time lags associated with policy decision making
Q60: (Table: Monetary Aggregates) Refer to Table: Monetary
Q65: Contractionary monetary policy:<br>A) is appropriate during a
Q81: The short-run aggregate supply curve is positively
Q126: People forgo interest and hold money:<br>A) because
Q183: When the output gap is negative, the
Q242: Supply-side economics is the belief that tax
Q276: To decrease interest rates, the Fed should