Multiple Choice
During the recessions of the early 1980s and 1990s:
A) Canada's actual real GDP was greater than potential GDP.
B) Canada's actual real GDP and potential GDP were equal.
C) Canada's actual real GDP was less than potential GDP.
D) Canada's potential GDP declined, while actual GDP increased.
Correct Answer:
Verified
Correct Answer:
Verified
Q77: The interest-rate and wealth effects are important
Q78: Fiscal policy and/or monetary policy:<br>A) change aggregate
Q79: Estimates in recent years put the natural
Q80: The substitution (trade-effect) shows that:<br>A) an increase
Q81: An unemployment rate greater than the natural
Q83: The potential output line is:<br>A) vertical because
Q84: As the price level falls, the holders
Q85: The aggregate demand - aggregate supply model
Q86: A recessionary gap refers to the:<br>A) amount
Q87: If potential output exceeds aggregate demand:<br>A) an