If major global trading partners experience a deep economic downturn, this is likely to increase cyclical unemployment in Canada because
the domestic currency will appreciate, making imports more attractive to Canadian consumers.
the value of Canadian export sales to these trading partners will decline, reducing aggregate demand.
foreign suppliers will suffer severe capacity constraints and restrict essential exports to Canada.
global commodity prices will rise dramatically, inducing a cost-push wage-price spiral.
327 exam-style questions on AQA A Level Economics 2.3 Economic performance, covering 2.3.1 Economic growth and the economic cycle, 2.3.2 Employment and unemployment, 2.3.3 Inflation and deflation, and 2.3.4 Possible conflicts between macroeconomic policy objectives. Each one has a worked solution and a mark scheme showing where the marks go.