So at this time period the modified taylor rule

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includes the zero bound, they are doing all they can according to the modified Taylor Rule. So at this time period, the modified Taylor Rule explains Fed behavior much better than the original Taylor Rule.This is more evidence that the modified Taylor Rule explains Fed behavior better than the original - the unemployment gap is driving Fed behavior, not the GDP gap.
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13.Unemployment benefits are an example of fiscal policy.
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14.According to Ricardian Equivalence in a strict sense, the tax multiplier is zero.
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15.When looking at the GDP data from quarter 3 of 2012, government purchases accounted for a larger share of the economy than investment expenditures did.
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