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In the Short Run,the Bank of Canada Aims to ________,In

Question 95

Multiple Choice

In the short run,the Bank of Canada aims to ________,in an effort to ________.


A) enhance any positive shocks; keep inflation within its target band
B) reduce any positive or negative output gaps; keep inflation close to the official target
C) ignore any shocks as they are automatically adjusting; keep GDP growth constant
D) keep actual output within 1%-3% of potential output; keep the money supply growing at a constant rate
E) ignore any shocks as they are automatically adjusting; keep inflation within its target band

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