Use the following to answer questions :
Figure: Output Gap 
-(Figure: Output Gap) Look at the figure Output Gap. If the economy is producing at Y1, then it has a(n) _____ gap, as _____ real GDP exceeds _____ real GDP, and the Federal Reserve should use _____ monetary policy.
Definitions:
Statutory Law
Law enacted by a legislative body, such as Congress or state legislatures, distinguished from case law or common law.
State Supreme Court
The highest court within a state in the United States, with final judicial authority over state law.
Lower Court
A court with limited jurisdiction, whose decisions may be reviewed by higher courts, also known as inferior or trial courts.
Common Law
A legal system based on precedent and judicial decisions rather than statutory laws, forming the basis of the legal system in the UK, the US, and other countries.
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