Canada's exports to the European Union boom. What is the effect on the quantity of real GDP demanded or aggregate demand in Canada?
A)The quantity of Canadian real GDP demanded increases.
B)The quantity of Canadian real GDP demanded decreases.
C)Canadian aggregate demand increases.
D)Canadian aggregate demand decreases.
E)There is no change to either the quantity of real GDP demanded or to aggregate demand.

Question

Quizplus · Accepted Answer

An increase in exports to the European Union means more foreign demand for Canadian goods and services, which increases Canadian aggregate demand.

Canada's Exports to the European Union Boom