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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
What are the advantages and disadvantages of a weak versus a strong dollar for imports, exports, international and domestic markets?
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If Viracein uses the same calculation to find the unemployment rate, what is the country's unemployment rate?
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Illustrate what do you think would the futures price of 100 shares of your reference company to be delivered to you in one year be right now.
Discuss structural, cyclical, frictional, and natural unemployment. What fiscal and monetary policies are appropriate to fight unemployment? What type of unemployment will be affected most by these policies? Why? Which will be affected least? Why?
If the government imposes a quantity tax on the consumption of a good, it means that the consumer has to pay for each unit of the good its price plus the tax.
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The ability to create new products and process and to organize production to make goods and sevices available.
Toronto charges a property tax rate of 4 percent on commercial buildings while Markham charges a tax rate of 3 percent on the same type of building.
Economic growth has increased in the past few months in the United States and driven by a surging stock market and increased confidence in the global economy, Canadians have increased optimism about the future of economic growth.
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