Analyze each of the following statements and determine whether it is True, False, or Uncertain. Marking will be based entirely on the supporting arguments. Therefore, try to be thorough in your answers and base your discussion on the theories that have been reviewed in this course.

a)As Canada is experiencing an economic downturn due to Covid -19 the actual budget deficit exceeds the structural budget deficit.

b)Crowding out is the offsetting reduction in private expenditure caused by the rise of interests rates that follows a contractionary fiscal policy.

c)Canada will import goods for which has excess supply at the world price. In the absence of international trade, the world price of these goods will be more than the domestic price.

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d)Suppose Canada can produce one kilogram of beef for $2.5 and Brazil can produce one kilogram of beef for $2.9. Canada is said to have an absolute advantage in beef production over Brazil.However, the gains from trades do not depend on absolute advantage.

e)Provincial Governments in Canada legislate specific minimum wages, which define the lowest wage rates that may legally be paid. .In a competitive labour market, minimum-wage legislation leads to a decrease in the quantity of labour demanded, and an increase in the quantity of labour supplied, and unemployment rises.