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

question 29

Multiple Choice

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

• A)decrease interest rates.
• B)increase interest rates.
• C)decrease income tax rates.
• D)increase income tax rates.
• E)leave interest rates unchanged.

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