Refer to the figure below.Suppose the economy is in a short-run equilibrium at output Y1 and inflation rate 2.The economy is currently experiencing ______, and the correct fiscal policy response to this situation, to return the economy to potential GDP, is to ______. 
Definitions:
Privately Held Companies
Businesses whose shares are not traded on public stock exchanges and are usually owned by the company founders, management, or a group of private investors.
Acquisition Differential
The difference between the purchase price of an acquired entity and the fair value of its net assets.
Investor's Cost
The total amount expended by an investor to purchase shares of a company, including the purchase price and any associated fees or commissions.
Carrying Value
The monetary value of an asset as recorded on the balance sheet, factoring in depreciation, impairments, and amortization.
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