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Suppose that the Reserve Bank of New Zealand is following the Taylor rule and in 2018, it sets the ofcial cash rate (the NZ. equivalent
Suppose that the Reserve Bank of New Zealand is following the Taylor rule and in 2018, it sets the ofcial cash rate (the NZ. equivalent of the federal funds rate) at \"It .0 percent a year. If the inflation rate in New Zealand is 6.0 percent a year and the target inflation rate is 2 percent a year, what is its output gap? The output gap is percent
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