What should be the increase in spending on the part

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Reference no: EM13157342

CAn you give me definitions and explain these questions?

1) An economy needs 400 bn. Spending to close the recessionary gap, multiplier is 4; what should be the increase in spending on the part of the of the government?

2) How increase or decrease in tax (and government spending) help close the recessionary and inflationary gaps?

3) Taylor rule of money supply?

Reference no: EM13157342

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