6. Suppose the current price level is 149.2 and one year ago the price level was 147.3. Output is currently $12.89 trillion and potential output is $13.53 trillion (both in 2018 $). A. What is the Taylor equation and briefly explain its significance. B Calculate the current inflation rate. What is the percentage deviation from full employment output? How would you describe the current state of the economy? D. Assume a = = 12, r* = 2% and the Fed targets an inflation rate of 2%. What value of the federal funds rate would the Fed choose if it follows the Taylor Rule? E. Suppose that one year later, the price level has risen by 3.4% and output is 1% below employment. In this new situation (assuming a = $ = 12, r* = 2% and the Fed targets an inflation rate of 2%), what value of the federal funds rate would the Fed choose if it follows the Taylor Rule