EL {12 points] Consider an eoznnonifl,F that begins with output at potential and an ination rate of in so the economy begins in stead}.r state.
EL {12 points] Consider an eoznnonifl,F that begins with output at potential and an ination rate of in so the economy begins in stead}.r state. A new chair of the central bank decides to lower the longrun ination target to " 1:: '. Show how the economy responds over time using the ASKED framework. [You should clearly?r label the axes and explain everything you want to show on your graph. You shoulrl also list the equations for AD and AS curves.) Comment on your results
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