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According to the Taylor rule, the Fed should set the target for the federal funds rate equal to the sum of the equilibrium real federal
According to the Taylor rule, the Fed should set the target for the federal funds rate equal to the sum of the equilibrium real federal funds rate, the current inflation rate, onehalf times the and onehalf times the
interest rate gap; inflation gap
interest rate gap; output gap
inflation gap; output gap
unemployment gap; governmentspending gap
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