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The inflation rate is expected to read at 3%. Real GDP growth is expected at 3%. Fed's target inflation rate is 2%. The economy's potential
The inflation rate is expected to read at 3%. Real GDP growth is expected at 3%. Fed's target inflation rate is 2%. The economy's potential real GDP growth rate is 2%. What does this situation look like in the AD-AS framework and what should be the Fed's monetary policy response?
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