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

---

Definitions:

Optimal Cost

The lowest possible cost at which a particular operation, process, or activity can be performed efficiently without sacrificing quality or outcome.

Double-subscripted Variables

Variables in mathematical modeling or data analysis denoted with two subscripts, indicating their position in a matrix or their relationship between two sets.

Material Balance Equation

An equation used in chemical engineering to relate the quantities of materials entering and leaving a process.

Winter Season

The coldest season of the year, occurring between autumn and spring, characterized by lower temperatures and minimal daylight hours in temperate zones.