Consider the Following News Headline: "Canadian Exporters Hurt by Foreign

question 5

Multiple Choice

Consider the following news headline: "Canadian exporters hurt by foreign recession." Assuming that aggregate output is demand- determined, what effect will this have, all other things equal, on the AE function and on equilibrium national income?

• A)the AE function will rotate upward (become steeper)and equilibrium national income will rise.
• B)the AE function will shift up parallel to itself and equilibrium national income will rise.
• C)the AE function will rotate downward (become flatter)and national income will fall.
• D)there will be no change in the AE function or in equilibrium national income.
• E)the AE function will shift down parallel to itself and equilibrium national income will fall.

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Definitions:

Alternative Dispute Resolution

A range of processes, such as mediation and arbitration, designed to resolve disputes without traditional litigation.

Question of Law

A matter concerning the interpretation or application of laws, as opposed to a question of fact, decided by a judge.

Appellate Court

An Appellate Court is a higher court that reviews the decisions of lower courts to ensure legal errors were not made during the proceedings.

Arbitrator's Decision

The final ruling or determination made by an arbitrator, who is a neutral third party chosen to resolve a dispute.