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Suppose that the Reserve Bank of New Zealand is following the Taylor rule and in2018, it sets the official cash rate(the N.Z. equivalent of the

Suppose that the Reserve Bank of New Zealand is following the Taylor rule and in2018, it sets the official cash rate(the N.Z. equivalent of the federal fundsrate) at 9.0 percent a year. If the inflation rate in New Zealand is 4.0 percent a year and the target inflation rate is 2 percent ayear, what is its outputgap?

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