One Reason That Inflation Can Persist Even After Its Original

question 21

Multiple Choice

One reason that 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.

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