Question: Please help me with this Question. Suppose the monetary-policy rule has the wrong natural rate of interest, and the central bank follows this rule: it

Please help me with this Question.

Suppose the monetary-policy rule has the wrong natural rate of interest, and the central bank follows this rule: it = 7Tt + P, + 912(7Tt ' 7T1?) + 6Y(Yt ' Yr), 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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