Question

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

Answer 1

The Taylor Rule is a rule that links inflation and economic growth to a central bank's policy rate.

It was created in 1993 by economist John Taylor and presupposes an equilibrium federal funds rate that is 2% higher than the yearly inflation rate.

Thus, Twice is the answer for the blank.

Why is the Taylor principle significant, What does it entail?

It means that the real interest rate should be raised when inflation increases.

The Taylor principle is the theory that, in order to reduce economic heat when inflation rises (by raising the real interest rate), the nominal interest rate should be raised "more than one-for-one."

For more information about Taylor rule refer to the link:

https://brainly.com/question/24118497

#SPJ1