Predict how the Bank of Canada would likely respond if the output gap became more positive, so
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Predict how the Bank of Canada would likely respond if the output gap became more positive, so that output moved from being 0.1% above potential output to being 3% above potential output, and inflation rose above its 2% target rate.
How would you expect unemployment to change over the next year or two in response to the Bank’s actions?
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Related Book For 
Principles Of Macroeconomics
ISBN: 9781982166649
1st Canadian Edition
Authors: Betsey Stevenson, Justin Wolfers, Philip Oreopoulos, Kevin Milligan
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