[Related to Solved Problem 13.4 on page 463] In early 2017, policymakers at the Federal Reserve forecast that real GDP during 2017 would increase faster than potential GDP and that the inflation rate...

[Related to Solved Problem 13.4 on page 463] In early

2017, policymakers at the Federal Reserve forecast that

real GDP during 2017 would increase faster than potential GDP and that the inflation rate for the year would be

about 1.9 percent.

a. Fill in the missing values in the table with estimates

that are consistent with these forecasts.

b. Draw a dynamic aggregate demand and aggregate

supply graph to illustrate your answer to part (a).

Source: Federal Open Market Committee, “Advance Release of

Table 1 of the Summary of Economic Projections to be Released with

the FOMC Minutes,” March 15, 2017.