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7. Throughout the course we have investigated economic theories and built macroeconomic models to understand how employment, output, consumption, prices and interest rates are determined

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7. Throughout the course we have investigated economic theories and built macroeconomic models to understand how employment, output, consumption, prices and interest rates are determined and how they behave and respond to economic shocks. Drawing on these theories answer the following questions thoughtfully. a. Canada's economy (post the COVID-19 shock) is expected to recover in 2021, meaning that domestic output will bounce back strongly to above normal growth levels. Please identify and explain three factors that will support and drive this economic recovery. (6 marks) b. While forecasters project an economic recovery in 2021, Canada's economy may still face challenges and risks that prevent the country 'om overcoming the negative COVID- 19 shock. Identify and explain three economic risks that could act as a barrier to an economic recovery this year. (6 marks)

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