According to the International Monetary Fund,Canada's potential output has __________ at an annual rate of __________ in recent years.
A) expanded;10%
B) expanded;7.5%
C) expanded;2.5%
D) contracted;5%
E) contracted;10%

Question

Quizplus · Accepted Answer

The statement says that Canada's potential output has expanded in recent years, which rules out options D and E. The annual rate of expansion is not likely to be as high as 10% or 7.5%, so options A and B can also be eliminated. Therefore, the only logical choice is C, which states that Canada's potential output has expanded at an annual rate of 2.5%.

According to the International Monetary Fund,Canada's Potential Output Has __________