Problem
If you were in the position of the Fed in early 2001, with unemployment around 4 percent and inflation low but with signs the economy was starting to slow, would you have lowered interest rates? Why or why not? Does your answer depend on whether your estimate of the natural rate of unemployment is 4 percent or 6 percent?
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.