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1. Assume the decreases Bank of Canada the supply of money. In the short-run, explain how the interest rate and Real GDP in the economy

1. Assume the decreases Bank of Canada the supply of money. In the short-run, explain how the interest rate and Real GDP in the economy will be affected. 2. Suppose the economy suddenly experiences a lower level of unemployment and a higher price level in the short-run. What could be responsible for this: An increase in Net Taxes OR an increase in wages OR an increase in transfer payments? Choose one and explain why.

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