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I am not sure if I did this question correctly... Suppose the equilibrium real federal funds rate is 2 percent, the target rate of inflation
I am not sure if I did this question correctly... Suppose the equilibrium real federal funds rate is percent, the target rate of inflation is percent, the current
inflation rate is percent, and real GDP is percent above potential real GDP If the weights for the inflation gap and
the output gap are both then according to the Taylor rule the federal funds target rate equals:
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