Choose the statement that is incorrect.
A)The last time the Bank of Canada created a recession was at the beginning of the 1990s when it was faced with the threat of ongoing double- digit inflation.
B)The Bank of Canada's monetary policy is sensitive to the state of employment while maintaining its focus on achieving its inflation target.
C)The Bank of Canada's strategy of inflation rate targeting that keeps the inflation rate low and stable makes the maximum possible contribution towards achieving full employment and sustained economic growth.
D)The inflation- control target uses the Consumer Price Index as the measure of inflation.
E)The Bank of Canada's strategy of inflation rate targeting has resulted in an unemployment rate that is 0.3 percent per year below the natural unemployment rate on average.

Question

Quizplus · Accepted Answer

The Bank of Canada's strategy of inflation rate targeting aims to maintain inflation within a specific range to ensure economic stability, but it does not directly result in an unemployment rate below the natural rate of unemployment. The natural rate of unemployment is determined by various factors, including the structure of the labor market and economic policies, not solely by inflation targeting strategies.

Choose the Statement That Is Incorrect