Suppose the Canadian economy is facing an inflationary output gap (Y > Y*) .In our macro model,such an output gap can explain changes in which of the following variables?
A) the average level of wages
B) the level of wages in the forestry sector relative to the mining sector
C) the level of wages in a high-growth region of the country relative to a slow-growth region
D) the level of wages for skilled workers relative to unskilled workers
E) the level of wages for female workers relative to male workers
Correct Answer:
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