Compared to the 1970s, How Did the Canadian Short-Run Phillips

question 97

Multiple Choice

Compared to the 1970s, how did the Canadian short-run Phillips curve move in recent years and why?

• A) It has moved further right as inflation expectations have risen.
• B) It has moved further right as inflation expectations have fallen.
• C) It has moved further left as inflation expectations have risen.
• D) It has moved further left as inflation expectations have fallen.

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Definitions:

Inflation

The pace at which prices for services and goods generally ascend, reducing the value of money.

P/E Ratios

The Price to Earnings ratio, a valuation metric used to compare the market value of a stock to its earnings per share, indicating how much investors are willing to pay per dollar of earnings.

Expected Growth Rates

Forecasts of how fast particular economic indicators, such as sales or earnings, will grow over a specified period.

PEG Ratio

PEG Ratio stands for Price/Earnings to Growth ratio, a stock's valuation metric that evaluates a stock's price-earnings ratio relative to its earnings growth rate, offering insight into its future potential compared to its current earnings.