Real GDP 2018 Q3 = 15667.032 Real potential GDP 2018 Q3 = 15850.86591 PCE 2007 Q3 = 91.653 PCE 2008 Q3 = 95.266 The target rate of inflation = 2% a. Using the data links above, calculate the federal funds rate implied by the original Taylor rule. We assume that the equilibrium (natural) real rate of interest is 2%, just like Taylor did, and we use the same coefficients

Real GDP 2018 Q3 = 15667.032 Real potential GDP 2018 Q3 = 15850.86591 PCE 2007 Q3 = 91.653 PCE 2008 Q3 = 95.266 The target rate of inflation = 2% a. Using the data links above, calculate the federal funds rate implied by the original Taylor rule. We assume that the equilibrium (natural) real rate of interest is 2%, just like Taylor did, and we use the same coefficients

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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