In Both New Zealand and Canada,what Has Happened to the Unemployment

question 16

Multiple Choice

In both New Zealand and Canada,what has happened to the unemployment rate since the countries adopted inflation targeting?

• A)The unemployment rate increased sharply.
• B)The unemployment rate remained constant.
• C)The unemployment rate has declined substantially after a sharp increase.
• D)The unemployment rate declined sharply immediately after the inflation targets were adopted.

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Definitions:

Income Tax Expense

Income tax expense is the charge to earnings in a given period for taxes owed to federal, state, and local governments based on taxable income.

Income Tax

Tax levied on company income.

AASB 112

The Australian Accounting Standards Board's standard regarding Income Taxes, which dictates the accounting treatment for current and deferred tax.

Deferred Tax

A tax liability or asset that arises due to the temporary differences between the accounting income and the taxable income.