When Confronting Declining Economic Growth and Recession During the 1990s,how

question 25

Multiple Choice

When confronting declining economic growth and recession during the 1990s,how did the Canadian response differ from that of Japan?

• A)Canada reduced government spending and shifted the government budget toward a surplus;Japan did the opposite.
• B)Canada increased government spending and shifted the government budget toward a deficit;Japan did the opposite.
• C)Canada shifted to a highly restrictive monetary policy,while the monetary policy of Japan was highly expansionary.
• D)Canada increased tariffs and imposed trade restrictions;Japan did the opposite.

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Definitions:

Demand Curve

A graphical representation in economics showing the relationship between the price of a specific good and the amount of it that consumers are willing and able to purchase at various prices.

Supply Curve

The supply curve graphically represents the relationship between the price of a good and the quantity supplied by producers over a specific time period.

Market

A system or place where parties engage in exchange of goods, services, or information, characterized by supply and demand.

Positive Externality

A benefit that is enjoyed by a third-party as a result of an economic transaction in which they had no direct involvement.