An economic recession in the U.S. ______ the demand for exports from Canada resulting in a reduction in Canadi

Question

An economic recession in the U.S. ______ the demand for exports from Canada resulting in a reduction in Canadian autonomous expenditures and a(n) ________ output gap in Canada.

A. reduces; expansionary

B. increases; expansionary

C. reduces; recessionary

D. increases; recessionary

E. reduces; autonomous

Answer 1

B

Answer 2

C. reduces; recessionary