Business
Business, 01.05.2021 01:00, starlightmoon213

Predict how the Fed would likely respond if the output gap became more positive, so that output moved from being 0.1% above potential output to being 3% above potential output, and inflation rose above its 2% target rate. a. The Fed would likely set a interest rate target. How would you expect unemployment to change over the next year or two in response to the Fed’s actions? b. If the Fed pursued this action, you would expect unemployment to over the next year or two.

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Predict how the Fed would likely respond if the output gap became more positive, so that output move...

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