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Suppose the monetary-policy rule has the wrong natural rate of interest, and the central bank follows this rule: it = as + was. a?) +

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Suppose the monetary-policy rule has the wrong natural rate of interest, and the central bank follows this rule: it = as + was\". a?) + 6'1 (Y: 17), where pr does not equal p, the natural rate of interest in the goods demand equation. The rest of the dynamic ALIAS model is the same as in the chapter. Solve for the long- run equilibrium under this poIiczgr rule. Explain in words the intuition behind your solution

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