In the text we stated that the Bank of Canada's longrun policy target is the rate of

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In the text we stated that the Bank of Canada's longrun policy target is the rate of inflation.

a. What observations have led many central banks to choose this long-run policy target?

b. The Bank of Canada closely monitors the level of real GDP and the output gap in the short run. How does it use this information in pursuit of its long-run policy of targeting the rate of inflation at 2 percent?

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Macroeconomics

ISBN: 9780133910445

15th Edition

Authors: Christopher T S Ragan

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Question Posted: Mar 14, 2024 12:00 PM

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In the text we stated that the Bank of Canada's longrun policy target is the rate of

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Macroeconomics

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