Consider the Canadian Economy Initially at Potential Output

question 101

Multiple Choice

Consider the Canadian economy initially at potential output.An economic expansion in the U.S._________ the demand for exports from Canada,resulting in an increase in Canada's planned aggregate expenditure and a(n) __________ output gap in Canada.

• A) reduces;expansionary
• B) increases;expansionary
• C) reduces;recessionary
• D) increases;recessionary
• E) reduces;autonomous

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Definitions:

Magic Number

A term often used to refer to the number 7±2, which psychology suggests is the span of working memory, or the maximum number of items an individual can maintain in cognizant thought at once.

Chunking

A memory technique that organizes information into manageable units or chunks, making it easier to remember.

Miller

Refers to George A. Miller, a notable psychologist best known for his theory on the limitations of short-term memory capacity, famously summarized as "the magical number seven, plus or minus two."

Chunking

A cognitive strategy for organizing information into more manageable parts or groups to enhance learning and memory recall.