Assume Canadian consumers expect future income to rise. Starting from the natural rate of output, explain with a graph how this expectation will affect the interest rate, inflation rate and real GDP...



Assume Canadian consumers expect future income to rise. Starting from the natural rate of output, explain with a graph how this expectation will affect the interest rate, inflation rate and real GDP in the short-run. Also show and explain how the bank of Canada can help take the inflation rate back to its original target?




Jun 09, 2022
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