In 2007 and 2008,Canada Was Affected by the Global Financial

question 53

Multiple Choice

In 2007 and 2008,Canada was affected by the global financial crisis that had begun with the U.S.housing collapse.By 2009,the Canadian economy had entered a recession,largely due to a reduction in investment and a ________.The policy objective for the Bank of Canada and the government at this time was to ________.

• A)fall in net exports; shift the AD curve to the right to close the recessionary output gap
• B)fall in consumption; shift the AD curve to the right to close the inflationary output gap
• C)fall in consumption; shift the AD curve to the left to close the recessionary output gap
• D)fall in net exports; shift the AS curve to close the inflationary output gap
• E)fall in housing starts; shift the AD curve to the left to close the recessionary output gap

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Definitions:

Last Year's Margin

The difference between sales revenue and the cost of goods sold in the previous fiscal year, often used as a benchmark for financial performance.

Unfavorable Effect

Occurs when actual costs exceed budgeted costs, or actual revenues are less than expected, negatively impacting financial performance.

Trained Workers

Personnel who have received specific training to perform their job duties effectively and efficiently.

Variances

Differences between planned or standard costs and actual costs, analyzed to understand and manage costs within financial planning.