The Taylor rule suggests that the policy rate target should be increased when the output gap is

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The Taylor rule suggests that the policy rate target should be increased when the output gap is positive. Do you think the Taylor rule encourages or discourages demand-pull inflation?

Which might be a limitation of the Taylor rule with respect to demand-pull inflation?

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Macroeconomics Policy And Practice

ISBN: 978-0133424317

2nd Edition

Authors: Frederic Mishkin

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Question Posted: Feb 20, 2024 04:01 AM

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The Taylor rule suggests that the policy rate target should be increased when the output gap is

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Macroeconomics Policy And Practice

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