Using Taylor’s rule, when the equilibrium real federal funds…

Using Taylor’s rule, when the equilibrium real federal funds rate is 3 percent, the positive output gap is 2 percent, the target inflation rate is 1 percent, and the actual inflation rate is 2 percent, the nominal federal funds rate target should be   Federal funds rate target = inflation rate + equilibrium real fed funds rate + ½ (inflation gap) + ½ (output gap)