Economics.

Harper: Economic Outlook 'Not So Positive' Price level (GDP deflator, 2007=100) Prime Minister Stephen Harper emerged from a meeting with Finance Minister Jim Flaherty and Bank of Canada governor Mark Carney in Ottawa saying the world economic picture is "not so positive." The fear is that a failure to 130- contain the European debt crisis will push a weak global economy into a recession. Harper and British Prime Minister SAS David Cameron ended their meeting in Ottawa with a call for European leaders to take decisive action in order to avoid a second downturn and warned that governments must commit to cutting their debts and deficits and to resisting protectionism. 120 Source: CBC, September 27, 2011 What does Stephen Harper mean by "not so positive" and how would Canada be affected by a global recession? 110- When Stephen Harper uses the expression "not so positive" he means that_ income growth is negative in developing countries, and income disparity is growing among developing and 100- developed countries B. many countries could be heading towards recession, which would decrease Canada's exports AD 90 O C. European countries plan to cut investment to eliminate their government debt, and this will result in an increase 1000 1100 1200 1300 1400 in Canada's net transfers to Europe Real GDP ( billions of 2007 dollars) O D. the values of world currencies have negative growth, which decreases investment by foreigners in Canada 23> Draw only the objects specified in the question. The graph shows Canada's aggregate demand and short-run aggregate supply curves. Draw a point at the short-run macroeconomic equilibrium. Label it 1. Draw a curve to show the effect of the world economic picture that is "not so positive", Label it AD,. Draw a point to show the new short-run macroeconomic equilibrium. Label it 2