The Short- Run Objective of the Bank of Canada Is

question 66

Multiple Choice

The short- run objective of the Bank of Canada is to ; the long- run objective is to _.

• A)enhance any positive shocks; keep inflation within its target band
• B)keep actual output within 1%- 3% of potential output; keep the money supply growing at a constant rate
• C)reduce any positive or negative output gaps; keep inflation within its target band
• D)ignore any shocks as they are automatically adjusting; keep inflation within its target band
• E)ignore any shocks as they are automatically adjusting; keep GDP growth constant

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Definitions:

Encoding Specificity

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