Based on the diagram, if potential output equals 8,000 and the real interest rate is 4 percent, then there is ________ gap and the Fed must ________ the real interest rate so that output will equal potential output. 
Definitions:
Q20: Potential output is:<br>A)equal to actual output.<br>B)also known
Q36: At a short-run equilibrium _, while at
Q72: Because decreases in inflation increase planned spending
Q75: 'One best way' is the phrase most
Q76: In Macroland, potential output equals $100 trillion
Q77: When inflation equals the value determined by
Q94: International capital flows are:<br>A)purchases of foreign goods
Q108: Higher rates of inflation reduce planned spending
Q131: Because an increase in the nominal interest
Q153: A currency revaluation is a(n):<br>A)increase in the