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If the Bank of Canada Focuses on Price Stability,the Aggregate

Question 74

Multiple Choice

If the Bank of Canada focuses on price stability,the aggregate demand curve will be relatively ________,which shows that aggregate expenditure is ________ to changes in the inflation rate.


A) flat; very sensitive
B) flat; very insensitive
C) steep; very sensitive
D) steep; very insensitive

Correct Answer:

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