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According to the Taylor Rule, If the Inﬂation Rate Is

Question 356

Multiple Choice

According to the Taylor rule, if the inﬂation rate is 5 percent and the unemployment rate is 4.3 percent, the

A) inﬂation gap is 2 percent.
B) economic gap is 0.7 percent.
C) unemployment gap is 4.3 percent.
D) inﬂation gap is 3 percent.

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