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

question 73

Multiple Choice

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

• A)a substantial supply shock caused by a large increase in the world price of oil.
• B)steadily decreasing factor prices.
• C)external pressures on the Canadian dollar.
• D)the extremely high wage increases being won by strong labour unions.
• E)steadily decreasing factor prices and a contractionary monetary policy.