Macroeconomic Policy in Canada
Outline the costs and benefits of achieving price stability relative to output stability within Canada (ensure to discuss the fact that there is no trade-off between inflation and unemployment in the short and long run). Discuss the costs of inflation, the costs and benefits of reducing inflation and how this compares to reducing unemployment if at all possible. Discuss the arguments for a Canadian policy for targeting zero inflation as the primary objective, especially in the long- run. If so, what things can governments do to tackle unemployment, especially structural?
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