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

Question

Quizplus · Accepted Answer

An expansion in the E.U. economy would increase demand for Canadian exports, leading to an increase in Canadian real GDP. This increase in demand could also lead to a decrease in Canadian unemployment.

Suppose That the E