Question

The taylor rule puts _________ as much weight on closing the unemployment gap as it does on closing the inflation gap.

Answer 1

Taylor's rule puts double weight on closing the unemployment gap in comparison to the inflation gap.

What is inflation?

Inflation is the scenario where the price of goods or services is increased in such a way that results in decreasing the purchasing power of people.

The focus of Taylor's principle is to close the gap in unemployment by much double weight in contrast with the gap in inflation. It wants that the unemployment gap should be twice the inflation gap at the time of closing.

Therefore, the twice weight should be put up on unemployment as suggested by the rule of Taylor.

Learn more about Taylor in the related link:

brainly.com/question/461247

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