The central bank has stated that the short-term interest rate 1f inflation and GDP growth were on target would be 2.23%. Your colleague from the capital markets team has collected target data for these economic variables and made forecasts for your country and for another country but did not specify which set applies to your country: Target Forecast 1 Forecast 2 GDP growth rate 2.00% 1.00% 4.75% Inflation rate 2.25% 1.50% 2.75% From earlier discussions, you recall that your colleague mentioned that your country's growth in consumer spending and business investment is likely to be lesser than expected, that unemployment 1s likely to be higher than expected and production capacity utilisation 1s likely to be lower than previously thought. (1) Which set of forecast applies to your country? Defend your answer. (11) Using your answer from part (a)(1), forecast the central bank's target short-term interest rate