A recessionary gap can be caused by an appreciation of the Canadian dollar and decreased exports.

Name: A recessionary gap can be caused by an appreciation of the Canadian dollar and decreased exports.
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An appreciation of the Canadian dollar makes Canadian exports more expensive for other countries, leading to decreased demand and decreased exports. This can cause a recessionary gap, where the economy is producing below its potential level of output.

A Recessionary Gap Can Be Caused by an Appreciation of the Canadian