At the End of the 1970s,the Inflation Rate in Canada

question 109

Multiple Choice

At the end of the 1970s,the inflation rate in Canada had exceeded 10%.This high inflation was due mainly to

• A)external pressures on the Canadian dollar.
• B)steadily decreasing factor prices.
• C)steadily decreasing factor prices and a contractionary monetary policy.
• D)a substantial negative supply shock that was partly validated by monetary policy.
• E)the extremely high wage increases being won by strong labour unions.