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Use the table below to answer the fallowing questions FF - the Federal Funds rate ACE INF - PCE inflation PCE CORE - the care

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Use the table below to answer the fallowing questions FF - the Federal Funds rate ACE INF - PCE inflation PCE CORE - the care rate of PCE inflation GDP - realGDP GDP POT - potential Iresb GDP UR - the unemployment rate Data Table For Question 3 DATES FF PCE INF PCE CORE GDP GOP POT UR 2002-04-01 1.75 1.1 1.7 12894.7 13052.8 5.3 2002-07-01 1.74 1.5 1.9 12956.7 13161.2 5.7 2002-10-01 1.44 1.9 1.7 12962.9 13267.4 5.9 2003-01-01 1.25 2.5 1.7 13028.6 13371.3 5.9 2003-04-01 1.25 1.g 1.5 13151.3 13470.6 6.1 2003-07-01 1.02 1.9 1.4 13374.0 13566.8 6.1 2003-10-01 1.00 1.9 1.4 13525.7 13659.8 5.9 2004-01-01 1.00 1.7 13606.6 13748.2 5.7 2004-04-01 1.01 2.5 1.g 13710.7 13832.5 5.6 2004-07-01 1.43 2. 2.0 13831.0 13916.8 5.4 2004-10-01 1.95 2.1 13947.7 13909.2 5.4 2005-01-01 2.47 2.6 2.2 14100.2 14082.6 5.3 2005-04-01 2.94 2.6 2.1 14177.2 14165.8 5.1 2005-07-01 3.46 3. 1 2.1 14292.9 14249.3 5.0 2005-10-01 3.98 3.1 2.3 14372.0 14333.2 5.0 2006-01-01 4.46 3.0 2.1 14546.4 14418.5 4.7 2006-04-01 4.91 2.1 2.3 14591.6 14504.9 4.6 2006-07-01 5.25 2.8 14604.4 14592.0 4.6 2006-10-01 5.25 1.9 2.2 14718.4 14679.8 4.4 2007-01-01 5.26 2.3 2.4 14723.1 14763.3 4.5 2007-04-01 5.25 2.3 1 14241.5 14259.1 4.5 2007-07-01 5.07 2.0 14941.5 14949.5 4.7 2007-10-01 4.50 3.3 14996.1 15032.72 4.8 We are using data from 2003-07-01 to answer parts al bl and cl 21 15 paints) Using the original Taylor Rule where the equilibrium real rate of interest is estimated to be 2% and the target inflation rate is 2%% what is the federal funds rate implied by the Taylor Rule? 6 15 points) Using the Mankini Rule, what is the Federal Funds rate implied by the Mankin Rule? 15 points According to the Taylor Rule was the Fed being hawkish or dovish during this period? Explain and be specific with numbers ( 15 paints) Let's Fest Forward 3 years to 2006-07-01. Using the original Taylor Rule where the equilibrium real rate of interest is estimated to be 2% and the target inflation rate is 2%% what is the federal Funds rate implied by the Taylor Rule? 15 paints) According to the Taylor Rule was the Fed being hawkish or dovish during this period? Explain and be specific with numbers

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