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If the Bank of Canada were to miscalculate the NAIRU (non-accelerating inflation rate of unemployment) as being 6% when in fact it was 8%, it

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If the Bank of Canada were to miscalculate the NAIRU (non-accelerating inflation rate of unemployment) as being 6% when in fact it was 8%, it might cause O A. a reduction in the natural rate of unemployment, because it would be allowing inflation to occur. B. consumers to spend more than they intended, because the Bank of Canada misled them about the unemployment rate. O C. accelerating inflation, because it would be unknowingly validating an inflationary gap. O D. a temporary decrease in inflationary expectations, because NAIRU measures the expected inflation rate. O E. a one-time reduction in unemployment, because of a one-time increase in the money supply and the price level.If the NAIRU was 4% and the actual unemployment rate was 3%, we would conclude that O A. the sticky wages would mean no decrease in nominal wages. O B. the output-gap effect would work to increase nominal wages for workers. 0 c. the unemployment rate would have to fall further before the expectational effect would inuence wage changes. 0 D. the expectational and output-gap effects would both likely mean no change in nominal wages. O E. there would be no output-gap effect because unemployment was very high. If the NAIRU is 7 percent and the actual unemployment rate is 10 percent, 0 A. there is no pressure on the AS curve to shift. 0 B. the AD curve will shift upward. O C. it will get stuck there permanently. O D. there is an inationary gap. 0 E. the AS curve will shift downward"

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