In an Effort to Maintain Inflation at Its Targeted Level

question 90

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

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Definitions:

Financial Statement

A record that details the financial activities and conditions of a business or individual, commonly including the balance sheet, income statement, and cash flow statement.

Financial Statement

Formal records of the financial activities and position of a business, individual, or other entity, typically including the income statement, balance sheet, and statement of cash flows.

Normal Balance

The side (debit or credit) where increases are recorded for a particular type of account, reflecting the account's normal balance position in the accounting equation.

Financial Statement

Papers that present a summary of a company's financial status, covering the balance sheet, income statement, and statement of cash flows.