In an Effort to Maintain Inflation at Its Targeted Level

question 44

Multiple Choice

In an effort to maintain inflation at its targeted level the Bank of Canada designs its policies,in the short run,to

• A)eliminate all unemployment.
• B)keep real GDP close to potential output.
• C)minimize the growth of the money supply.
• D)allow the aggregate supply curve to close any output gaps.
• E)eliminate all negative shocks to the economy.

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