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| Page 189, Box 8-3 “A Policy Exercise—Ah, If Only It Were This Easy”
In the Step-By-Step section of Box 8-3, number 4 should read: 4. Since we need a 3 percent increase in output and each 1 percent of output requires a 2 percentage point drop in interest rates, our monetary policy answer is to cut interest rates by 6 percent. |