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Quention 40 (ss poiven) rate. target federal funds rate - natural rate of linterest * currem inhlialon o whitininis Rap) +. Wh(output gap) Where the

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Quention 40 (ss poiven) rate. target federal funds rate - natural rate of linterest * currem inhlialon o whitininis Rap) +. Wh(output gap) Where the current rate of inflation is 6 percent, the natural rate ot interest is 2 perion is Percent, the target rate of inflation is 2 perc potential, the tare 11 percent. 10 percent. 2.5 percent. 6.5 percent. 3.5 percent

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