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In the Latter Part of the 1990s,Canada Reduced Government Spending

Question 60

Multiple Choice

In the latter part of the 1990s,Canada reduced government spending as a share of the economy and shifted the budget to a surplus.In the years that followed,the Canadian economy


A) experienced sharply higher rates of unemployment.
B) grew more rapidly than any of the world's large high-income economies.
C) experienced an economic slowdown that forced policy-makers to reverse the direction of fiscal policy.
D) continued to experience slow economic growth,which explains why this period is now referred to as Canada's "lost decade."

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