If the Bank of Canada Announced a Policy to Reduce

question 73

Multiple Choice

If the Bank of Canada announced a policy to reduce inflation and people found it credible, what would happen to the short-run Phillips curve and the sacrifice ratio?

• A) The short-run Phillips curve would shift right, and the sacrifice ratio would fall.
• B) The short-run Phillips curve would shift right, and the sacrifice ratio would rise.
• C) The short-run Phillips curve would shift left, and the sacrifice ratio would fall.
• D) The short-run Phillips curve would shift left, and the sacrifice ratio would rise.

---

Definitions:

Admissions

The process or act of allowing someone to enter a place, institution, or organization, often based on certain criteria or requirements.

Guilt

A feeling of responsibility or remorse for some offense, crime, wrong, whether real or imagined.

Negative Announcement

A communication that delivers bad news, unfavorable decisions, or adverse information to an audience.

Indirect

A communication approach that is not straightforward or direct, often used to soften a message or to be polite.