Explain the separate effects of each event on Canadian real GDP and the price level, starting from
Question:
The following events have occurred in the history of Canada:
• A deep recession hits the world economy.
• The world oil price rises sharply.
• Canadian businesses expect future profits to fall.
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A deep recession in the world economy decreases aggregate demand which decr...View the full answer
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Related Book For 
Macroeconomics Canada in the Global Environment
ISBN: 978-0321778109
8th edition
Authors: Michael Parkin, Robin Bade
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