Consider the Global Recession That Began in Late 2008

question 75

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

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Definitions:

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow in his 1943 paper "A Theory of Human Motivation," which outlines a five-tier model of human needs, arranged in a hierarchy from basic (physiological) to more complex (self-actualization) needs.

Physiological Need

Fundamental requirements necessary for maintaining life and physical health, such as food, water, air, and shelter.

Leg Wound

An injury or open sore on the leg, which could result from accidents, surgeries, or medical conditions, requiring proper care and treatment.

Social Identity

An individual's sense of who they are based on their group memberships, such as nationality, ethnicity, or religion.