The world goes into an expansion. This event
A)decreases Canada's aggregate demand and decreases Canada's short-run aggregate supply.
B)increases Canada's short-run aggregate supply.
C)decreases Canada's aggregate demand.
D)increases Canada's aggregate demand.
E)increases Canada's long-run aggregate supply.

Question

Quizplus · Accepted Answer

An expansion in the world economy would result in increased demand for Canadian goods and services, as well as increased investment and consumer confidence. This would lead to an increase in Canada's aggregate demand.

The World Goes into an Expansion. This Event