During the COVID-19 Recession in 2020, the federal government has been spending money on specific programs to support workers and businesses, including increased transfer payments and a variety of subsidies (as have other countries around the world). These extra payments have led to a large deficit, the largest in Canadian history. Drag and drop the correct words into the statements below. This deficit means the federal _____ will increase rapidly. This increase is a potential worry because higher ______ can drive up ____ and create snowballing _____ .

However, the crucial factor to consider in worrying about the deficit is the ______ , and whether it is increasing or not. Because _____ are low, the _____ is probably going to stay under control, as long as _____ growth stays high enough relative to ______ .

fill in the blanks with the following

deficit

surplus

debt interest rates

inflation

debt/GDP ratio

price/GDP ratio

unemployment rate

real GDP