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If the Bank of Canada were to miscalculate the NAIRU (non-accelerating inflation rate of unemployment) as being 1010% when in fact it was 1212%, it
If the Bank of Canada were to miscalculate the NAIRU (non-accelerating inflation rate of unemployment) as being 1010% when in fact it was 1212%, it might cause Part 2 A. a reduction in the natural rate of unemployment, because it would be allowing inflation to occur. B. a one-time reduction in unemployment, because of a one-time increase in the money supply and the price level. C. consumers to spend more than they intended, because the Bank of Canada misled them about the unemployment rate. D. accelerating inflation, because it would be unknowingly validating an inflationary gap. E. a temporary decrease in inflationary expectations, because NAIRU measures the expected inflation rate
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