From an Initial Long-Run Macroeconomic Equilibrium, If the Bank of Canada

question 261

Multiple Choice

From an initial long-run macroeconomic equilibrium, if the Bank of Canada anticipated that next year aggregate demand would grow significantly faster than long-run aggregate supply, then the Bank of Canada would most likely

• A)increase income tax rates.
• B)decrease income tax rates.
• C)increase interest rates.
• D)decrease interest rates.
• E)decrease the operating band for the bank rate.

---

Definitions:

Average Total Cost

The total cost of production divided by the quantity of output produced; it includes all variable and fixed costs.

Medicare and Medicaid

U.S. government programs that provide health insurance to the elderly, disabled (Medicare) and individuals/families with low income (Medicaid).

Public Health Insurance

Government-provided insurance programs designed to offer health coverage to eligible individuals, aiming to improve accessibility and affordability.

Ration Health Care

The controlled distribution of scarce healthcare resources, where decisions are made regarding who gets what level of care based on various factors, often due to limitations in resources or funding.