How is this Taylor diagram constructed? thats all you need to answer, thanks

b. Suppose we have an economy where: i) the normal value of the real interest rate is about 2%, i) the official inflation target is also 2%, and iii) consumers and firms use the currently observed inflation rate as their best guess about inflation next year. For this economy, draw the Taylor Rule in a diagram with inflation on the horizontal axis and the real interest rate on the vertical axis for three different levels of the output gap: zero, minus 2 and plus 2 percent. From the text, we know that they Taylor rule is: i = r + 7 + 0.5(n - nx) + 0.58 To get r, we just subtract it from both sides: r=i-n =r+0.5(m -1x)+0.51 Plugging in values given above, we have: r = 0.02 + 0.5(7 - 0.02) + 0.5Y Graphing the three lines for when the target interest rate i is greater than zero is straightforward. But recall that the central bank cannot set an interest rate below zero, so whenever the target interest rate is negative, we must substitute a value of i = 0 instead. And since r = i - It, then when i = 0, then r will rise one-for-one as it falls. This is what we see at the left of the graph - all of the Taylor rules converge to the 135 line. 6 4 zero - - minus 2 ---. plus 2 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10