The reason why inflation can persist even after its original causes have been removed is that
A) workers expect wage increases to match increases in labour productivity.
B) workers are willing to accept wage increases lower than the increase in productivity.
C) the Bank of Canada ensures that money-supply growth matches growth in real GDP.
D) inflationary expectations cause the AS curve to continue shifting upwards.
E) governments embark on a deficit-cutting program.
Correct Answer:
Verified
Q2: Suppose economists were able to measure frictional
Q4: Suppose economists were able to measure frictional
Q7: Suppose the Canadian economy is facing an
Q8: Inflationary pressures that result from a rightward
Q9: Which of the following is consistent with
Q13: Suppose the NAIRU for Canada is 6.5%,the
Q14: The term NAIRU stands for the
A)non-accelerating inflation
Q16: If the unemployment rate is less than
Q19: Actual inflation would be 2% when expected
Q20: Suppose economists were able to measure frictional
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