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During the fiscal period 2009-2011 the Canadian Government implemented an Economic Action Plan that involved running the largest budget deficits in Canadian history. Describe and briefly explain in point-form notes below each of the following aspects of this course of action.
1. What macroeconomic circumstances must the government have been facing?
2. What fiscal policies would the government have at its disposal to deal with this problem?
3. Following Keynesian theory "How would the government expect these policies to affect each of the following macroeconomic variables?"
a. aggregate demand
b. aggregate supply
c. equilibrium output
d. equilibrium price level
How is an open market bond purchase by the Fed expected to change bank reserves, bank lending, the money supply, interest rates, total spending, output, and employment (increase or decrease)?
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Assume the current equilibrium price of cheese pizza is $10 also 10 million pizzas are sold every month. After the federal government imposes
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Using your knowledge of utility and consumer behavior and the data below, show exactly how you would spend your income, on which goods and why. Be sure to calculate the MU/P for good X and good y, and then proceed. At what point do you reach utility..
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