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Exhibit 27-1 Real Interest Rate Reaction to Inflation and the GDP Gap Percent Gap Between Real and Potential GDP Inflation -1 0 1 1.5 2 2 3 5 3 3.5 4.5 6 4 5 7 9 5 7 9 11 Exhibit 27-1 is an example of O how real GDP reacts to changes in the interest rate. O an aggregate demand curve. O how potential GDP reacts to changes in inflation. O the Fed's monetary policy rule. O how real GDP reacts to changes in inflation