The federal reserve took policy measure to slow down

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In 2000, the Federal Reserve took policy measure to slow down economy. this decision generated some controversy since the actual inflation rate was below 3%. Justify the Fed's move. in this regard, where did they think the actual level of US real GDP was relative to its natural level? How does the unemployment rate of 4.2% at the time enter into your analysis?

Reference no: EM13734558

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