In the fictional country of Terland, the economy is producin…

In the fictional country of Terland, the economy is producing 2,400 trillion dollars in 2028, while the potential output is 1,900 trillion dollars. Which kind of gap do we have, and should the Federal Reserve increase or decrease the money supply to close the gap?

In the fictional country of Solandia, the economy is current…

In the fictional country of Solandia, the economy is currently producing 5,800 trillion dollars, while the potential output is 4,800 trillion dollars in the year 2035.To close this gap, which type of monetary policy should the central bank implement, and does this mean the money supply should increase or decrease?