Which of the following describes the difference between the Taylor rule

12.Which of the following describes the difference between the Taylor rule and inflation targeting?Inflation targeting is used in conducting fiscal policy, while the Taylor rule is used in monetary policy.The Taylor rule responds to past inflation, and inflation targeting is based on a forecast of inflation.Inflation targeting responds to past inflation, and the Taylor rule is based on a forecast of inflation.The Federal Reserve uses inflation targeting, and the Bank of England uses the Taylor rule.13.When nominal wages increase, the short-run aggregate supply curve:remains constant.shifts to the left.shifts to the right.disappears.14.Contractionary monetary policy causes _____ in the price level in the short run and _____ in the price level in the long run.a decrease; a decreasea decrease; no changeno change; no changeno change; a decrease15.Figure: Monetary Policy and the AD–SRAS ModelReference: Ref 15-7(Figure: Monetary Policy and the AD–SRAS Model) Look at the figure Monetary Policy and the AD–SRAS Model. If the economy is in a recessionary gap at point f, it could move to point g as a result of:a decrease in the money supply.purchases of government securities in the open market.a decrease in government spending.an increase in the discount rate.17.Contractionary monetary policy causes a short-run _____ in interest rates in the short run and _____ in interest rates in the long run.decrease; a decreaseincrease; an increasedecrease; no changeincrease; no change

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