4) How would decrease in price level affect the demand for money? Support your answer with the help of a diagram. 5) think about what kind of country is Canada. These are opinion-based questions. In a country like Canada, do you think deficit budget is better than surplus budget why or why not? In a country like Canada, which monetary policy would work best - contractionary or expansionary? 6) Statistics Canada reported the following data for 2013: Labor force: 24m, Employment: 20m, working age population: 28m. Calculate the unemployment rate and labor force participation rate. 7) Statistics Canada reported the following data for July 2014. Participation rate = 68.4% Working age population = 30m Employment to population ratio = 64the labor force. 8) Describe any two factors that can cause cost push inflation. 9) Describe two main factors of Quantity Theory of Money. 10) Can current account and capital account be in surplus simultaneously? Explain 11) Assume a simple world in which U.S. exports soft drinks and beer to France and imports wine from France. If U.S. imposes large tariffs on the French wine, explain the likely impact on the values of the U.S. beverage firms U.S. wine producers, the French beverage firms, and the French wine producers. 12) Calculate the current account for U.S. based on the following data for 2015. Export of goods and services $270, Import of goods and services $533, Foreign aids received $23, Foreign aids and grants provided $73, Investment by U.S. companies in foreign countries for establishing subsidiaries $550, U.S companies' acquisitions by foreigners $55, Interest and dividend paid by U.S $121, Financial grant received by US $44