One Policy Response to the Economic Slowdown in Canada in 2008-2009

question 92

Multiple Choice

One policy response to the economic slowdown in Canada in 2008-2009 was to increase money growth. This policy response can be represented in the IS-LM model by shifting the _____ curve to the _____.

• A)LM; right
• B)LM; left
• C)IS; right
• D)IS; left

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Definitions:

Freud

Sigmund Freud was an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Positive Feedback

A process in which the end products of an action cause more of the action to occur in a feedback loop, amplifying the original action.

Aspiration

A strong desire, longing, or ambition for achieving something.

Reinforced

Strengthened or emphasized, often in the context of behavior strengthened by rewards or positive outcomes.