Suppose that the E.U.economy goes into an expansion.Canadian real GDP _______ and Canadian unemployment _______ in the short run.
A)increases; decreases
B)decreases; increases
C)decreases; decreases
D)increases; increases
E)does not change; does not change

Question

Quizplus · Accepted Answer

An expansion in the EU economy will lead to an increase in demand for Canadian goods and services, which will lead to an increase in Canadian real GDP. This increase in production will likely lead to a decrease in Canadian unemployment in the short run as firms expand and hire more workers to keep up with the increased demand.

Suppose That the E