Suppose that the equilibrium real federal funds rate is 2 percent and the target rate of inflation

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Suppose that the equilibrium real federal funds rate is 2 percent and the target rate of inflation is 2 percent. Use the following information and the Taylor rule to calculate the federal funds rate target:
Current inflation rate = 4 percent
Potential GDP = 17.0 trillion
Real GDP = 17.17 trillion
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Economics

ISBN: 978-0134106243

6th edition

Authors: R. Glenn Hubbard

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