The ongoing process of globalization of the world economy has an effect on the NAIRU in Canada. Choose the statement that best describes the likely effect.
A) Since globalization has brought net economic benefits to Canada, it follows that the NAIRU must be decreasing.
B) Because Canada is experiencing greater trade with the rest of the world, the increasing demand for exports puts upward pressure on the demand for labour in Canada and thus tends to decrease the NAIRU.
C) Canadian labour markets increasingly need to adjust to changing supply and demand conditions around the world. These ongoing adjustments tend to increase the NAIRU.
D) Canada's labour market is increasingly connected to labour markets in other parts of the world and the NAIRU in Canada tends to adjust to the same levels as those of our trading partners.
E) Globalization has meant that Canadian labour markets are less exposed to economic fluctuations elsewhere in the world, which has decreased the NAIRU.
Correct Answer:
Verified
Q16: Suppose a free- trade agreement with Central
Q17: "Efficiency wages" are said to exist when
Q18: Other things being equal, improvements in the
Q19: Which of the following statements best explains
Q20: An unemployed worker can be identified as
Q22: An unemployed worker can be identified as
Q23: Which of the following best explains why
Q24: Which of the following policies could the
Q25: Suppose there are 2000 unemployed textile workers
Q26: The economy in the diagram below begins
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents