Solved

The Reason Why Inflation Can Persist Even After Its Original

Question 72

Multiple Choice

The reason why inflation can persist even after its original causes have been removed is that


A) governments embark on a deficit- cutting program.
B) the Bank of Canada ensures that money- supply growth matches growth in real GDP.
C) workers expect wage increases to match increases in labour productivity.
D) inflationary expectations cause AS to continue shifting upwards.
E) workers are willing to accept wage increases lower than the increase in productivity.

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