In both New Zealand and Canada,what has happened to the unemployment rate since the countries adopted inflation targeting?
A)The unemployment rate increased sharply.
B)The unemployment rate remained constant.
C)The unemployment rate has declined substantially after a sharp increase.
D)The unemployment rate declined sharply immediately after the inflation targets were adopted.

Question

Quizplus · Accepted Answer

Both New Zealand and Canada saw their unemployment rates decline substantially after the adoption of inflation targeting. This is because inflation targeting typically involves using monetary policy to keep inflation at a low and stable level, which can help to create a more stable and predictable economic environment that is conducive to job creation and economic growth. While there may be some short-term adjustments that can lead to temporary increases in unemployment, the long-term trend has been positive for both countries.

In Both New Zealand and Canada,what Has Happened to the Unemployment