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ECONOMICS 110/111 There are many observers of the Canadian economy who fear that policies of the incoming US administration will have negative



ECONOMICS 110/111

There are many observers of the Canadian economy who fear that policies of the incoming US administration will have negative consequences for the Canadian economy – even to the point that these policies will push the Canadian economy into recession. If these fears are borne out, what would you expect to happen to real national income and its growth rate over the next few quarters? What is likely to happen to the output gap? the unemployment rate? Briefly explain. [8]


 


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