Suppose Canadian Real GDP Is Equal to Potential GDP

question 89

Multiple Choice

Suppose Canadian real GDP is equal to potential GDP.An appreciation of the Canadian dollar then implies that the Bank of Canada should engage in

• A)a loosening of monetary policy because of the excess demand for Canadian products that is creating the appreciation.
• B)a tightening of monetary policy because of the excess demand for Canadian products that is creating the appreciation.
• C)no change in monetary policy because the exchange rate is always allowed to float freely.
• D)an increase in inflation because of the higher cost of imports.
• E)either a contractionary or an expansionary policy,depending on the cause of the appreciation.

Identify key theorists and their contributions to psychodynamic personality theory.

Recognize the role of early childhood experiences in shaping adult personality according to psychodynamic theories.

Understand the construct of the collective unconscious and its significance in Jung’s analytical psychology.

Grasp the mechanisms of operant conditioning and its application to behavior change.

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Definitions:

Profit

The financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes involved in sustaining the activities.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, and insurance.

Unit Variable Cost

The cost associated with producing one additional unit of a product, which includes labor, materials, and other variable expenses.

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.