Canadaʹs economy expanded by...0.1 percent in the second quarter...further evidence that the economy has stalled...following a first quarter slip in gross domestic product. The second quarter figures fell well below forecasts of a 0.7 per cent growth in real GDP. Exports. fell for the fourth consecutive quarter. The accumulating gloom is increasingly
discouraging business investment. Consumer spending remains strong and corporate profits were at their highest since 2004. ʺThe sources of strength in the second quarter are clearly unsustainable,ʺ said Sal Gautieri, senior economist at BMO capital markets.
Canada Avoids Fall into Recession, www.FT.com, by Christopher Mason, August 30, 2008
-According to the article,_________ in_________ have contributed to Canadaʹs_________ change in real GDP.

Question

Canadaʹs economy expanded by...0.1 percent in the second quarter...further evidence that the economy has stalled...following a first quarter slip in gross domestic product. The second quarter figures fell well below forecasts of a 0.7 per cent growth in real GDP. Exports.	fell for the fourth consecutive quarter. The accumulating gloom is increasingly
discouraging business investment. Consumer spending remains strong and corporate profits were at their highest since 2004. ʺThe sources of strength in the second quarter are clearly unsustainable,ʺ said Sal Gautieri, senior economist at BMO capital markets.
Canada Avoids Fall into Recession, www.FT.com, by Christopher Mason, August 30, 2008
-According to the article,_________ in_________ have contributed to Canadaʹs_________ change in real GDP.

Quizplus · Accepted Answer

The article states that exports fell for the fourth consecutive quarter, discouraging business investment. This, along with a first quarter slip in GDP, suggests that decreases in exports and investment have contributed to Canada's unexpected change in real GDP. Option B is incorrect as there is no mention of government spending in the article. Option C is also incorrect as the sources of strength in the second quarter are described as unsustainable, implying that increases in consumption and investment are not the cause of the unexpected change in real GDP. Option D is incorrect as exports fell in the second quarter, implying that increases in exports are not the cause of the unexpected change in real GDP.

Canadaʹs Economy Expanded By