Question
By 1973,the inflation rate in Canada was high at 10%. This increase was as a result of the US government and Canadian government increasing expenditures
By 1973,the inflation rate in Canada was high at 10%. This increase was as a result of the US government and Canadian government increasing expenditures and also the quantity of money.
- Explain Demand-Pull Inflation in this scenario?
- How does it affect the Price Level?
- How does this affect the real GDP and the unemployment rate?
- what would you recommend that the bank of Canada about interest rate and Quantity of money?
How this scenarios is either Demand Pull or Cost Push Inflation.
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Public Relations
Authors: Tom Kelleher
1st Edition
0190201479, 9780190201470
