If it is clear that an economic disturbance is only transitory, a central bank's best policy response may be to O react moderately or not at all because a major policy change may itself be destabilizing O recommend fiscal policy changes, which will have less powerful effects than monetary policy changes O act quickly and vigorously so financial markets do not overreact O announce a policy change and then wait to see the reaction of financial markets before deciding whether or not to actually implement itAssume the central bank announced a 2% inflation target and has set the nominal interest rate at 5.0%. If actual inflation is 2.8%, the economy's output is_____off the full-employment level? O -1.2% O 1.2% O -0.4% O +0.4%According to the Taylor rule, if the current inflation rate is 3.2%, output is 1% above the full- employment level, and the central bank's announced inflation target is 2%, at what level should the central bank set the nominal interest rate? O 2.2% O 6.3% 3.3% O 4.4%