Assume the central bank announced a 2% inflation target and has set the nominal interest rate at 5.0%.If actual inflation is 2.8%, by how much is output off the full-employment level?
A)-1.2%
B)-0.8%
C)-0.4%
D)+0.4%
E)+1.2%

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The Answer of Assume the central bank announced a 2% inflation target and has set the nominal interest rate at 5.0%.If actual inflation is 2.8%, by how much is output off the full-employment level?
A)-1.2%
B)-0.8%
C)-0.4%
D)+0.4%
E)+1.2%

Assume the Central Bank Announced a 2% Inflation Target and Has