Other things equal, serious recessions in Canada's trading partners will:
A) have no perceptible impact on the Canadian economy.
B) cause inflation in the Canadian economy.
C) lead to lower exports, lower real output and lower employment in the Canadian economy.
D) lead to higher domestic consumption in the Canadian economy.

Question

Quizplus · Accepted Answer

Serious recessions in Canada's trading partners would likely result in decreased demand for Canadian exports. This decrease in demand can lead to lower real output and employment within the Canadian economy, as businesses may need to scale back production and workforce due to reduced sales overseas.

Other Things Equal, Serious Recessions in Canada's Trading Partners Will