Assume That in 2019 Aggregate Demand in Canada Begin to Grow

question 154

Multiple Choice

Assume that in 2019 aggregate demand in Canada begin to grow much faster than aggregate supply. What policy would you recommend to Parliament?

• A)The Bank of Canada should raise its target for the target for the overnight rate.
• B)There should be a decrease in government spending.
• C)Provincial governments should increase health care spending.
• D)Income taxes should be lowered to reduce the federal budget surplus and raise interest rates.
• E)Local governments should increase spending on water treatment systems to offset the damage of extra economic activity on the environment.

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Definitions:

Data

Information collected for reference or analysis, often numerical.

Squared Deviation

The squared differences between each observation and the mean, used as part of the calculation for variance.

Variance

A measure of the dispersion representing the average of the squared differences from the Mean.

Score

A numerical or categorical representation of a performance, achievement, or the outcome of an assessment.