Question: This is for macroeconomics. Please help asap. .) A Moving to another question will save this response. Question 8 10 points Save Ans Scenario: Taylor

This is for macroeconomics. Please help asap.

This is for macroeconomics. Please help asap. .) A Moving to another

.) A Moving to another question will save this response. Question 8 10 points Save Ans Scenario: Taylor Rule Suppose the Federal Reserve is following the Taylor rule, which takes both inflation and business cycles into account when setting the federal funds rate. Also suppose that the inflation rate in the economy is 3% and the unemployment gap is -2%. Reference: Ref 15-4 (Scenario: Taylor Rule) Look at the scenario Taylor Rule. The economy has: CA. an inflationary gap, since the inflation rate is high. CB. a recessionary gap, since potential real GDP exceeds actual real GDP. O C. a recessionary gap, since the economy is not producing potential GDP. CD. an inflationary gap, since actual real GDP exceeds potential real GDP. .) A Moving to another question will save this response.

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