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.

---

Definitions:

Cerebellum

A region of the brain that plays an important role in motor control, coordination, and balance.

Adolescence

The transitional stage of human development that occurs between childhood and adulthood, typically characterized by significant physical, psychological, and social changes.

College Attendance

The act of regularly being present at a college or university as part of one's educational pursuits.

Adolescent Depression

A depressive disorder occurring in teenagers, characterized by persistent sadness, withdrawal, and loss of interest in activities.