csonsider the following IS-IR-PC m = 99 - 0.2*r r = 3 pi = pi^e + 0.17*(Y-Y*) where Y* = 100 and pi^e = 1. Find the equilibrium inflation rate. (State your answer to 2 decimal places.)
csonsider the following IS-IR-PC m = 99 - 0.2*r r = 3 pi = pi^e + 0.17*(Y-Y*) where Y* = 100 and pi^e = 1. Find the equilibrium inflation rate. (State your answer to 2 decimal places.)
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter18: Six Debates Over Macroeconomic Policy
Section18.4: Should The Central Bank Aim For Zero Inflation?
Problem 4QQ
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. 3.csonsider the following IS-IR-PC m = 99 - 0.2*r
-
r = 3
pi = pi^e + 0.17*(Y-Y*)
where Y* = 100 and pi^e = 1.
Find the equilibrium inflation rate.
(State your answer to 2 decimal places.)
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