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Can I get detailed explanations and answers? If the real interest rate is 3%, the inflation target is 2%, full employment occurs at 4%, weights
Can I get detailed explanations and answers?
If the real interest rate is 3%, the inflation target is 2%, full employment occurs at 4%, weights on inflation and GDP gap are equal and sum to one, actual inflation is 6%, the unemployment rate is 4% what does the Taylor Rule say that the interest rate should be? Suppose instead that the real interest rate is 1%, actual inflation is 2%, unemployment is 7%. Then what does the Taylor Rule sayStep by Step Solution
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