Suppose that the Reserve Bank of New Zealand is following the Taylor rule and in 2018, it

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Suppose that the Reserve Bank of New Zealand is following the Taylor rule and in 2018, it sets the official cash rate (its equivalent of the federal funds rate) at 4 percent a year. If the inflation rate in New Zealand is 2 percent a year, what is its output gap?

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Economics

ISBN: 9781292433639

14th Global Edition

Authors: Michael Parkin

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