1) The Bank of Canada would like you to provide two monetary policy solutions that would shift the short-run aggregate demand curve and bring about a long-run equilibrium. Using the economic knowledge from this course, provide the two policy solutions that you would suggest and explain how they would close the recessionary gap.

2) Name and describe 2 negative economic or negative social consequences which may occur as a result of these policies. Note: You may provide 1 negative economic consequence and 1 negative social consequence if you like.