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Macroeconomics Consider the US economy with the following AD-AS equations: AD: Yt = at - bm(It - it) where b = 0.5, m = 0.5

Macroeconomics

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Consider the US economy with the following AD-AS equations: AD: Yt = at - bm(It - it) where b = 0.5, m = 0.5 AS: IIt = ne + VYt where v = 0.5 a. The Federal Reserve's inflation target is it = 2. Find the equilibrium GDP gap, Yt, and inflation, Tit, as a function of me, and at. (10 points)

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