Consider the Global Recession That Began in Late 2008

question 70

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.

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Definitions:

Designated Personnel

Individuals who are specifically chosen or assigned to carry out particular tasks or responsibilities.

Cash Receipts

The actual money received during a given period, including all forms of payment such as cash, checks, and credit card payments.

Establishment Of Responsibility

An accounting principle that ensures specific duties are assigned to individuals to increase accountability and prevent errors and fraud.

Treasurer

A treasurer is an officer of a company or organization responsible for managing financial operations, including investment, risk management, and corporate finance.