Answer the following question that can be viewed in the imagine bellow.

1. Econ 102 Problem Set #11 - Monetary policy Fed policy is centered around the neutral rate of interest. This can sometimes create trouble in satisfying the Fed's dual mandate. Ypispania is an economy whose short run equilibrium is determined by the equations IS: Y=15010r MP(1I:): r= 1 +1: and AD: Y= 140 -101r SRAS:11:=4 Notice that the economy has a sticky-price SRAS. Finally, Yspispania has a version of Okun's Law that says (Y - 7) = -5(U UN), where UN = 6. The economy starts in a long run equilibrium a. When we say the Fed has a \"dual mandate\