Question: Please help me to solve this question. Thank you so much! Suppose the monetary-policy rule has the wrong natural rate of interest, and the central

Please help me to solve this question. Thank you so much!

Please help me to solve this question. Thank you so much! Suppose

Suppose the monetary-policy rule has the wrong natural rate of interest, and the central bank follows this rule: it 2 \"t + P, + 9am ' 7T?) + 6Y(Yt ' 7t), where p' does not equal p, the natural rate of interest in the goods demand equation. The rest of the dynamic AD-AS model is the same as in the chapter. Solve algebraically for the long-run equilibrium (ination, output, and nominal interest rate) under this policy rule. Explain in words the intuition behind your solution

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