The mini recession that Canada experienced at the beginning of 2015 was most likely caused by
A)a drop in investment spending.
B)a drop in consumption spending.
C)a drop in government spending.
D)a drop in net exports.
E)a drop in aggregate supply.

Question

Quizplus · Accepted Answer

A drop in investment spending is the most likely cause of a mini recession, as it reduces the country's economic activity and can lead to a decline in GDP. Other factors may also contribute to a recession, but lack of investment spending is a major indicator of an economic slowdown.

The Mini Recession That Canada Experienced at the Beginning of 2015