Suppose we have a very patient Fed that wants to reduce the inflation rate from 8 percent to 3… 1 answer below »

Suppose we have a very patient Fed that wants to reduce the inflation rate from 8 percent to 3 percent in 5 years, beginning in 2014. How much cyclical unemployment is necessary each year if the Fed wants to reduce the inflation rate to 3 percent by 2018 (5 years)? Fill in the Table 2 below through 2020. Table Year p – p-1 p p-1 U Un2011 0 .08 .08 .05 ,052012 0 .08 .08 .05 ,052013 0 .08 .08 .05 ,052014 2015 2016 2017 2018 2019 2020