The Taylor rule specifies how policymakers should set the federal funds rate target. Suppose that U. S. real GDP falls 1% below potential GDP, all else constant. According to the Taylor rule, the Fed

Corrective action must be taken for a project when (a) actual progress to the planned progress shows the progress is ahead of schedule. (b) the technical specifications have been met. (c) the actual cost of the activities is less than the funds received for the work completed. (d) the actual progress is less than the planned progress.