Critics of the Government's Fiscal Policies Have Argued That Government

question 15

Multiple Choice

Critics of the government's fiscal policies have argued that government deficits

• A) prevent capital from flowing into Canada.
• B) are linked to the decline in productivity growth in Canada.
• C) caused the level of unemployment in Canada to increase during the 1980s.
• D) have directly contributed to a decline in the level of demand in the Canadian economy.

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Definitions:

Inflation Rate

A measure reflecting how much prices of goods and services have increased in a given period, reducing the purchasing power of money.

Market Basket

A set combination of goods and services used as a consistent measure to track the cost of living and inflation through price changes over time.

Basket of Goods

A selected group of products whose prices are tracked over time for the purpose of measuring inflation.

Base Period

A specific time period used as a benchmark for comparing economic data over time.