The World Goes into an Expansion

question 47

Multiple Choice

The world goes into an expansion.Starting from a position of long- run equilibrium, what effect does this event have on Canada's economy in the short run?

• A)Real GDP increases and the price level rises.
• B)Real GDP decreases and the price level falls.
• C)Real GDP increases and the price level falls.
• D)Real GDP decreases and the price level rises.
• E)There is no change in either real GDP or the price level.

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Definitions:

Erikson

Refers to Erik Erikson, a developmental psychologist known for his theory on the psychosocial development of humans.

Unique Person

An individual who is distinct and different from others in specific or general ways.

Early Sexual Activity

Refers to the engagement in sexual behaviors at an earlier stage of human development than is culturally or statistically normative.

Teenagers

Individuals in the age group of 13 to 19 years, characterized by rapid physical, emotional, and cognitive development as well as a search for identity.