Which of the Following Situations Is One in Which the Bank

question 224

Multiple Choice

Which of the following situations is one in which the Bank of Canada will potentially pursue expansionary monetary policy?

• A)Potential GDP is forecasted to be higher than equilibrium GDP.
• B)Potential GDP is forecasted to be lower than equilibrium GDP.
• C)Aggregate demand is growing too fast to keep the economy at full employment.
• D)Aggregate demand is growing too slowly and the economy is in danger of producing GDP above potential GDP.
• E)The unemployment rate has fallen below its natural rate.

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Definitions:

Resettle

The process of moving and establishing oneself in a new place, often used in the context of refugees or displaced individuals finding a new home.

Sleep Cycle

The progression through various stages of NREM and REM sleep repeating approximately every 90 minutes.

REM Sleep

A phase of sleep characterized by rapid eye movements, more vivid dreams, and increased brain activity.

Sleep Poorly

A condition characterized by difficulty falling asleep, frequent awakenings, or non-restorative sleep.