On which of the following do the Bank of Canada's policy decisions have an important influence?
A)both the rate of inflation and the level of employment in the short run
B)the rate of inflation in the long run and the level of employment in the short run
C)the rate of inflation in the short run and the level of employment in the long run
D)both the rate of inflation and the level of employment in both the short run and the long run

Question

Quizplus · Accepted Answer

The Bank of Canada's policy decisions primarily influence the rate of inflation in the long run through monetary policy, while they can affect the level of employment in the short run by influencing economic activity.

On Which of the Following Do the Bank of Canada's