38)Canada went from having a positive current account balance at the end of the last century to having a current account deficit now. This can be explained by...

a.A decrease in the net saving of the private sector.

b.An improvement in the government's budget balance.

c.An increase in the amount of foreign assets owned by Canadians.

d.A depreciation in the Canadian dollar.

39)An economy's long-run level of output does not depend on...

a.Productivity.

b.The quantity of inputs.

c.The state of technology.

d.How much factors of production are paid.

40)Aggregate demand is given by P = 100 - Y, aggregate supply is given by P = 10 + 2Y and potential GDP is 25. There is currently...

a.Sustainable growth.

b.A recessionary gap.

c.An inflationary gap.

d.No output gap.