Assume that the U. economy in a particular period is characterized by the following data: Actual inflation rate:

 Assume that the U.S. economy in a particular period is characterized by the following data:

Actual inflation rate:                                                                   4 percent per year

Target inflation rate:                                                                    2 percent per year

Equilibrium real interest rate:                                                      3 percent per year

Output gap (percentage excess of output over potential output): 2 percent

From the above data, calculate the value of the federal funds rate that would be prescribed by the Taylor rule.