What does the Taylor rule imply that policymakers should do to the fed funds rate under the following scenarios?
Unemployment declines due to a recovery.
A positive supply-side shock causes the rate of inflation to fall by 1% and output to rise by 1%.
The economy experiences prolonged reductions in productivity growth while actual output growth is unchanged.
Potential output increases while actual output remains unchanged.
The Fed revises its (implicit) inflation target up.