Multiple Choice
Suppose an increase in world oil prices leads to greater demand for Canadian oil exports.If the Bank of Canada reduces the overnight interest rate in response to this increase in AD,this is called
A) monetary validation.
B) a demand shock.
C) demand inflation.
D) a supply shock.
E) an adjustment process.
Correct Answer:
Verified
Correct Answer:
Verified
Q13: Suppose there is a positive AD shock,and
Q14: Which of the following would be expected
Q15: The sacrifice ratio is a measure of
Q16: Suppose the AS curve is continuously shifting
Q17: One of the results of the restrictive
Q19: The view that sustained inflation is possible
Q20: Economists use the term "monetary validation" to
Q21: One reason that inflation can persist even
Q22: Beginning from a position of long-run equilibrium,a
Q23: Suppose the economy is in a long-run