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Canada Had a High Rate of Unemployment and Sluggish Economy

Question 53

Multiple Choice

Canada had a high rate of unemployment and sluggish economy during the first half of the 1990s.During the latter half of the 1990s,Canada


A) reduced government spending as a share of the economy,shifted the budget toward a surplus,and the economy achieved solid economic growth in the years that followed.
B) increased government spending as a share of the economy,shifted the budget toward a deficit,and the economy achieved solid economic growth in the years that followed.
C) reduced government spending as a share of the economy,shifted the budget toward a surplus,and the economy quickly fell into a severe recession.
D) increased government spending as a share of the economy,shifted the budget toward a deficit,and the inflation rate soared to double-digit levels.

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