Question 9(1 point)

The Bank of Canada maintains an operating band for the overnight interest rate of:

50 percent of the bank rate.

50 basis points below the inflation rate.

50 percent of the inflation rate.

50 basis points below the bank rate.

Question 10(1 point)

The labour force participation rate is defined as:

the percentage of the working-age population that is unemployed

the percentage of the labour force that is employed

the percentage of the labour force that is unemployed

the percentage of the working-age population in the labour force.

Question 13(1 point)

If the economy is producing at potential GDP,?

the short-run aggregate supply curve must be vertical.

unemployment is at its natural rate.

the AD curve must be positively sloped.

inflation in the economy is at its natural rate

Question 16(1 point)

From an initial long-run equilibrium, if aggregate demand grows more slowly than long-run and short-run aggregate supply, the federal government would most likely:

decrease oil prices

decrease taxes

decrease government spending

increase the required reserve ratio and decrease government spending