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What does the Taylor rule imply that policymakers should do to the fed funds rate under the following scenarios? ***Unemployment declines due to a recovery.

What does the Taylor rule imply that policymakers should do to the fed funds rate under the following scenarios?

***Unemployment declines due to a recovery.

***A positive supply-side shock causes the rate of inflation to fall by 1% and output to rise by 1%.

***The economy experiences prolonged reductions in productivity growth while actual output growth is unchanged.

***Potential output increases while actual output remains unchanged.

***The Fed revises its (implicit) inflation target up.

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