If the Bank of Canada's Monetary Policy Rule Is R

question 128

Multiple Choice

If the Bank of Canada's monetary policy rule is r = 0.02 +
,the aggregate demand function for the economy is ADI = 5,000 + 0.8Y - 20,000r,current inflation equals 6% (0.06) ,and potential output (Y*) equals 19,000,then short-run equilibrium output equals __________,and inflation will eventually equal ________% when the economy returns to potential.

• A) 17,000;4
• B) 17,000;5
• C) 18,000;6
• D) 18,000;7
• E) 19,000;4

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Bargaining Unit

Employees joined together for the purpose of collective bargaining.

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An upward adjustment in employees' salaries or wages, often due to economic conditions, labor market pressures, or performance.

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