In 2015 U.S. inflation was 1.2%, and output was 0.6% below its long-run potential. In 2019, an expanding U.S. economy caused inflation to increase to 1.6%, and output was 0.4% above its long-run potential. If the inflation target is 2%, what was the federal funds target in 2015 using the Taylor rule? If the actual federal funds rate was 0.75% in 2016, did the Taylor rule estimate the target accurately? Again assuming an inflation target of 2%, what was the federal funds target in 2019 using the Taylor rule? If the actual federal funds rate was 2.5% in 2019, did the Taylor rule do a better job predicting interest rates compared to 2016? Explain your answer.