Suppose that the annual inflation rate is 7% and that output gap is +0.5%. If you were on the Federal Open Market Committee, what action would you prescribe? How would this affect the economy, the inflation rate, and the unemployment rate?

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The Answer of Suppose that the annual inflation rate is 7% and that output gap is +0.5%. If you were on the Federal Open Market Committee, what action would you prescribe? How would this affect the economy, the inflation rate, and the unemployment rate?

Suppose That the Annual Inflation Rate Is 7% and That