Use the following to answer questions: 
-Consider an economy that is facing a recessionary gap.The Bank of Canada decides to use expansionary monetary policy to close that gap.As a result of this policy,in the short run the money supply will _____,the interest rate will _____,investment and consumption spending will _____,and real GDP will _____.
Definitions:
Overhead Efficiency Variance
The difference between flexible budgets using actual volume and standard volume. It is an estimate of the additional overhead incurred.
Direct Labor Hours
The total amount of time workers spend directly manufacturing a product or providing a service.
Mix Variance
Captures the effect of substitution among the products, holding constant the number of units sold.
Direct Labor
The cost associated with employees who are directly involved in the production of goods or services.
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Q147: If the economy is at potential output
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Q263: If the economy is at potential output
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