In the Taylor rule, does the target for the overnight interest rate respond differently for a recession caused by a decrease in aggregate demand and for a recession caused by a decrease in short-run aggregate supply? Explain whether there is or is not a difference in how the target for the overnight interest rate changes.

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The Answer of In the Taylor rule, does the target for the overnight interest rate respond differently for a recession caused by a decrease in aggregate demand and for a recession caused by a decrease in short-run aggregate supply? Explain whether there is or is not a difference in how the target for the overnight interest rate changes.

In the Taylor Rule, Does the Target for the Overnight