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(9 points) Broadly speaking, this entire question is about the role of certainty in the economy. (a) (4 points) We talked about many drivers of
(9 points) Broadly speaking, this entire question is about the role of certainty in the economy. (a) (4 points) We talked about many drivers of development earlier in the class. Talk about how certainty relates to two of these drivers of economic development. (b) (3 points) What role does certainty play in our model of aggregate demand and supply? (c) (2 points) The Bank of Canada implemented a specific policy that is said to have increased certainty regarding price levels at some point in the past 50 years. What was this policy?
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