Question Details

According to the article, the best description of Canadas position in the business cycle is 



As the credit crisis unfolded over the past year, one of the few certainties in the global economy seemed to
be China ability to plough on regardless of double-digit growth rates...The ...crisis has also focused ...on
the need to update a growth model that...is still dependent on assembling goods for export without adding
much value and on heavy industries that create pollution. Chinese companies have continued to find new
foreign markets for their products...several other factors point to a slowing property market...production of
steel, cement and air conditioners was down... Retail sales have risen by 23 per cent in each of the last two
months.
Beijings Burden, www.FT.com, by Geoff Dyer, Sept. 23, 2008


1) According to the article, ________ are expected to contribute ________ to Chinaʹs real GDP in
2008.
A) exports and consumption; positively
B) consumption and government spending; negatively
C) exports and investment; negatively
D) rental income and investment; negatively

2) According to the article, ________ can be expected to ________ this year.
A) exports; increase
B) consumption; decrease
C) imports; decrease
D) net interest income; decrease
3) According to the article, ________ is expected to increase and add to Chinaʹs ________
component of GDP.
A) retail sales; consumption
B) retail sales; investment
C) rental income; investment
D) rental income; exports
Canadas economy expanded by...0.1 percent in the second quarter...further evidence that the economy has
stalled...following a first quarter slip in gross domestic product. The second quarter figures fell well below
forecasts of a 0.7 per cent growth in real GDP. Exports....fell for the fourth consecutive quarter. The
accumulating gloom is increasingly discouraging business investment. Consumer spending remains strong
and corporate profits were at their highest since 2004. The sources of strength in the second quarter are
clearly unsustainable, said Sal Gautieri, senior economist at BMO capital markets.
Canada Avoids Fall into Recession, www.FT.com, by Christopher Mason, August 30, 2008
4) According to the article, the best description of Canadas position in the business cycle is 
A) at a peak
B) at a trough
C) in an expansion
D) in a recession
5) According to the article, ________ in ________ have contributed to Canadaʹs ________ change in
real GDP.
A) increases; consumption and exports; expected
B) decreases; exports and investment; unexpected
C) increases; consumption and investment; unexpected
D) decreases; exports and government spending; expected



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