(Answered) Assume that the us economy in a particular period is

Engineering

Assume that the U.S. economy in a particular period is characterized by the following data:

Actual inflation rate: 4 percent per year

Target inflation rate: 2 percent per year

Equilibrium real interest rate: 3 percent per year

Output gap (percentage excess of output over potential output): 2 percent

From the above data, calculate the value of the federal funds rate that would be prescribed by the Taylor rule.

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