The "Yes - Markets Self-Adjust" camp argues that after a negative supply shock, the price level in Canada
A) rises, decreasing Canadian spending on imports.
B) falls, increasing R.O.W. spending on Canadian exports.
C) falls, increasing Canadian spending on imports.
D) rises, decreasing R.O.W. spending on Canadian exports.
E) falls, decreasing Canadian spending on imports.

Question

Quizplus · Accepted Answer

The Answer of The "Yes - Markets Self-Adjust" camp argues that after a negative supply shock, the price level in Canada
A) rises, decreasing Canadian spending on imports.
B) falls, increasing R.O.W. spending on Canadian exports.
C) falls, increasing Canadian spending on imports.
D) rises, decreasing R.O.W. spending on Canadian exports.
E) falls, decreasing Canadian spending on imports.

The "Yes - Markets Self-Adjust" Camp Argues That After a Negative