This is the question, refer to data given please.

The central bank wants to maintain ination at a xed target and to see the economy operating at potential output. It sets its overnight rate (onr) based on the following rule: onr = 3 + 2.2 (1T - 11\") + 0.8 [(Y - Yp)lYp] x 100 a) If the economy is operating at potential output and the ination rate is at the Bank's target, 11*, what is the Bank's onr setting? Note: Keep as much precision as possible during your calculations. Your nal answer should be accurate to at least two decimal places. onr @% b) Suppose a recession in a major trading partner lowers demand for domestic exports, lowers AD and lowers real income Y = Yp = 1,050 to Y = 955.5. How would the central bank respond (+ for increase, - for decrease)? lBasis point change in onr = a c) Alternatively, suppose a drop in labour productivity growth pushed the ination rate up by 0.4 percent. How would the central bank respond (+ for increase, - for decrease)? Basis point change in onr =