1.Use the following list of events that occur one at a time :

Event a: tropical storm Laura across the state of Vermont in the U.S.

Event b: more oil sands are discovered in Alberta, Canada and there is more innovation in fracking and oil sands.

For each event above, explain (with words + graphs) what happens to production function, labor demand, labor supply, equilibrium quantity of labor, real wage and GDP.

2.In order to support the Canadian dollar, the Bank of Canada buys an amount of Euros from some major commercial Canadian banks (a type of operation the Bank of Canada rarely undertakes).

Describe what limits the precision of the Bank of Canada's control of the money supply and explain how it limit that control.