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Aggreate demand changes 1 . 1 . 1 . 2 . 1 . 3 . 1 . 4 . 1 . 5 . 1 .

Aggreate demand changes

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1 . 1 . 1 . 2 . 1 . 3 . 1 . 4 . 1 . 5 . 1 . 6 . 1 . 7 . 1 . 8 . 1 . 9 . 1 .10. 1 11. 1 .12. Due to the pandemic, aggregate demand fell significantly in Canada. The Bank of Canada wants to increase both aggregate demand and output of the country. Use the concepts of money demand, money supply and aggregate demand to explain how the central bank (i.e., Bank of Canada) can increase Canadian GDP. In your answer, explain the impacts of the central bank's decision on the following: 1. Money supply change? (choose one) Insufficient information to determine Rises Falls Remains the same 2. Interest rates change? (choose one) Insufficient information to determine Rises Falls Remains the same 3. Investment change? (choose one) Insufficient information to determine Rises alls Remains the same 4. Aggregate demand change (due to changes in Parts 1,2,3)? (choose one) Insufficient information to determine Rises falls Remains the same 5. Capital flow change? (choose one) Insufficient information to determine Rises falls Remains the same 6. Exchange rate? (choose one) Insufficient information to determine Rises falls Remains the same 7. Net exports? (choose one) Insufficient information to determine Rises falls Remains the same 8. Aggregate demand change (due to changes in Parts 5, 6, 7)? (choose one) Insufficient information to determine Rises falls Remains the same

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