Consider the Global Recession That Began in Late 2008

Multiple Choice

Consider the global recession that began in late 2008.In terms of the AD/AS model,which of the following statements best describes the macroeconomic effect on Canada's economy?

A) The AD curve shifted to the right due to reduced demand for Canadian exports,which created a recessionary gap.
B) The AD curve shifted to the left due to reduced demand for Canadian exports,which created a recessionary output gap.
C) The AS curve shifted to the right due to increased factor prices,which created a recessionary gap.
D) The AS curve shifted to the left due to increased factor prices,which created a recessionary gap.
E) Potential GDP fell,which reduced actual national income.