Of the Three Phases Involved in the Elimination of a Sustained

Multiple Choice

Of the three phases involved in the elimination of a sustained inflation in Canada,the second phase is characterized by

A) the Bank of Canada pursuing an expansionary monetary policy.
B) stagflation with falling output and continuing inflation.
C) the Bank of Canada increasing the rate of monetary expansion.
D) aggregate output being returned to potential output.
E) increased inflation with rising output and falling unemployment.