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How net exports will be impacted

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Reference no: EM132631643

Using the AS-AD model, show how the following events will impact real GDP and price level in Canada in the short run. Mention how net exports will be impacted (with 1-2 lines on why it is getting impacted).

1) USA is a big purchaser of Canadian goods and there is a recession in the U.S. economy

2) The Canadian exchange rate goes down (i.e. CAD dollar becomes weaker)

3) Due to Toronto Raptors winning the NBA, there is a rise in popularity of Canadian goods in foreign countries

4) The Japanese government increases trade restrictions on Canadian goods

Reference no: EM132631643

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