Suppose the NAIRU for Canada is 6.5%,and the actual unemployment rate is 5%.If the Bank of Canada reduces its target for the overnight interest rate,
A) it will move real GDP back toward potential GDP.
B) it will worsen the existing inflationary gap.
C) it will increase the unemployment rate.
D) the AD curve will shift to the left.
E) the AS curve will shift upward.
Correct Answer:
Verified
Q13: Suppose the NAIRU for Canada is 6.5%,the
Q14: What does the term NAIRU stand for?
A)non-accelerating
Q15: Which of the following would be expected
Q16: If the unemployment rate is less than
Q17: If the NAIRU is 8% and the
Q19: Actual inflation would be 2% when expected
Q20: Suppose economists were able to measure frictional
Q21: A constant inflation rate can be illustrated
Q22: A leftward shift of the AD curve
Q23: Consider the AD/AS model below with a
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