On September 15, 2014, the OECD Predicted That Global Growth

On September 15, 2014, the OECD predicted that global growth would continue at a moderate rate and that Canada's economic growth will strengthen. If the OECD forecasts turn out to be correct, and Canada is in a below full-employment equilibrium in 2014 (but close to full employment) , then in 2015 and 2016 the output gap will ________ and unemployment will ________.

A) increase; decrease
B) decrease or even reverse; increase
C) decrease or even reverse; decrease
D) increase; increase
E) decrease; not change

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