Question
Suppose the following conditions describe the current state of the Canadian economy. real GDP is growing at an annual rate of 3% the inflation rate
Suppose the following conditions describe the current state of the Canadian economy.
real GDP is growing at an annual rate of 3%
the inflation rate is 9% per annum
the unemployment rate is 4.5%
1. What is the main problem the economy faces? Explain your answer.
2. What would be the most appropriate way to deal with this problem by means of monetary policy? Justify your answer.
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Econometric Analysis Of Cross Section And Panel Data
Authors: Jeffrey M Wooldridge, J M Wooldridge
2nd Edition
0262232588, 9780262232586
