Of the Three Phases Involved in the Elimination of a Sustained

question 67

Multiple Choice

Of the three phases involved in the elimination of a sustained inflation in Canada, the second phase is characterized by

• A)the Bank of Canada slowing the rate of monetary expansion.
• B)increased inflation with rising output and falling unemployment.
• C)the Bank of Canada pursuing an expansionary monetary policy.
• D)aggregate output being returned to potential output.
• E)stagflation with falling output and continuing inflation.

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Definitions:

Cretaceous

The last period of the Mesozoic Era, marked by significant geological events and the extinction of dinosaurs.

Pleistocene

The geological epoch from about 2.6 million to 11,700 years ago, characterized by the last ice ages and the emergence of Homo sapiens.

Carboniferous

A geologic period and system that spans 60 million years from the end of the Devonian Period 358.9 million years ago, to the beginning of the Permian Period.

Ordovician

A geologic period and system of the Paleozoic Era, occurring around 485 to 444 million years ago, noted for its high levels of marine biodiversity.