Solved

Canada's Actual Rate of Inflation Is Fairly Constant Around the 2

Question 30

Multiple Choice

Canada's actual rate of inflation is fairly constant around the 2% level.We can conclude that


A) real GDP must be below potential GDP because we also have positive unemployment.
B) real GDP must be above potential GDP.
C) the Bank of Canada is accommodating this level of inflation with increases in the money supply.
D) the expectations about inflation are consistently wrong.
E) the economy is consistently experiencing an inflationary gap.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents