Multiple Choice
The short-run Phillips curve shifting down following the 1989 Bank of Canada announcement that they were adopting inflation targets shows that workers and firms
A) had adaptive expectations.
B) had rational expectations and that they trusted Bank of Canada announcements.
C) preferred high unemployment to high inflation.
D) consistently ignored inflation when setting nominal wages.
E) Both A and B are correct answers.
Correct Answer:
Verified
Correct Answer:
Verified
Q42: Figure 13.11 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3061/.jpg" alt="Figure 13.11
Q43: If the Bank of Canada chooses to
Q46: If workers and firms raise their inflation
Q48: In the long run, the Phillips curve
Q49: The curve showing the short-run relationship between
Q50: Figure 13.1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3061/.jpg" alt="Figure 13.1
Q51: Figure 13.2 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3061/.jpg" alt="Figure 13.2
Q101: What does it mean to say that
Q140: When will an increase in aggregate demand
Q172: According to the short-run Phillips curve,the unemployment