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The Increasing Importance of Services and Declining Importance of Goods

Question 34

Multiple Choice

The increasing importance of services and declining importance of goods since 1950 can help explain


A) why Canada has only experienced one recession since 1950.
B) the severity of the 2007-2009 recession.
C) the increase in the gap between potential GDP and real GDP.
D) the decrease in severity of business cycle fluctuations.

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