In Canada, because shipping plays such an important role in the economy, declines in cargo volumes reflect
A)increases in short-run aggregate supply.
B)increases in inflation.
C)declines in aggregate demand.
D)decreases in long-run aggregate supply.
E)a leftward shift in short-run aggregate supply.

Question

Quizplus · Accepted Answer

Since declines in cargo volumes reflect a decrease in the amount of goods being shipped, this would result in a decrease in demand for goods and services, which would lead to a decline in aggregate demand.

In Canada, Because Shipping Plays Such an Important Role in the Economy