How should central bank conduct monetary policy optimally, Microeconomics

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How should central bank conduct monetary policy optimally

Problem

Suppose that there are shocks total factor productivity which cause aggregate output to fluctuate. What does this imply for the Friedman rule, that is, how should the central bank conduct monetary policy optimally? Discuss.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: How should central bank conduct monetary policy optimally

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