An inflationary gap can be caused by a depreciation of the Canadian dollar and increased exports.

Name: An inflationary gap can be caused by a depreciation of the Canadian dollar and increased exports.
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A depreciation of the Canadian dollar can make exports cheaper and more competitive, leading to an increase in demand for Canadian products and a boost in export-led economic growth. This can cause an inflationary gap, where demand exceeds supply, leading to rising prices and inflation.

An Inflationary Gap Can Be Caused by a Depreciation of the Canadian