ask for macroeconomics. all the information is in the picture. please review it. thanks
Drawing and Calculation Questions - Answer All - Various marks 4. The following are transformation tables for two countries. 2. a. Using the data in the table below, calculate the undesired changes in a) On the foreign sector diagram below, properly label the axes and the curves. (1 mark) investment (IU). (2 marks) Canada Product A C D b) At an income level of Y1, the economy would be experiencing a balance of Wheat B 15 60 10 15 E 20 trade (1 mark) Corn 80 40 20 0 Level of Consumption| Gross Aggregate Savings Unintended Output (C) Investment Expenditure |(S) changes in Great Britain an (1g) (AE Investment Product A Xg&M D Income Wheat 0 B 5 LC (IU) 10 E 20 (GDP = Y) Corn 60 45 15 35 15 $695 $515 $75 590 180 $820 $620 $75 695 200 a. To produce one unit of corn, Canada must give up the production of Xg wheat. (1 mark) b. Which country has comparative advantage in wheat production? (1 mark) b. If output (production) in the economy was at $820, there would (shortage or a surplus) (circle the correct answer) of product by $_ As a result, we would see the economy. (expand / contract) [circle the correct BONUS answer]. (3 marks) Y1 Y2 Y3 GDP real You own a small restaurant in Calgary that serves wine. You offer your customers wine from France, Australia, Chile, and of course, Canada. Your cost for the French wine c) Assume the Canadian economy is currently at Y2. Let's assume that President Donald Trumps is successful at blocking Canadian imports. What would we 3. In our small country, it has been determined that out of every $1 the people was 18 EUR (Euros), Australia wine was 20 AUD (Australian dollars), Chilean wine expect to be the result? [Check-mark the correct answer. ] (1 mark) receive, they tend to consume about 90%. It has also been determined that when the 12,000 CPL (Chilean Pesos), and the Canadian wine was $23 CAD (Canadian dollars). businesses in our country produce about $180,000 worth of goods, that we are a stable Use the following information to calculate the prices. Imports from the USA would decrease causing a balance of trade surplus country (Ye). That is, we have no shortages or surpluses. However, we do have a in Canada relatively significant unemployment rate of 9.5%. Assume the businesses and $1 CAD = 484.62 CPL (Chilean Peso) Imports from the USA would decrease causing a balance of trade deficit in consumers in our country became quite optimistic about the future of our country and increased their collective spending by $7000. As a result, our economy (GDP real) 1 AUD = $1.06 CAD (Australian Dollar) Canada Exports to the USA would increase causing a balance of trade deficit in would increase by $_ and our new level of GDP real would be $_ 1 EUR = $1.26 CAD (Euro) Canada [Use the space below to show your work.] (2 marks) Exports to the USA would decrease causing no change in Canada's Chilean wine = $_ CAD GDP GDP would increase by $_ Australian wine = $ CAD Exports to the USA would decrease causing a balance of trade deficit in New real GDP would be $_ Canada French wine = $ CAD You sell each of these bottles for $30 CAD. If you sell wine from _ country, you will make the highest profit at $_CAD per bottle. (5 marks) d) Demonstrate the effect of the above scenario by shifting the appropriate curve on the previous diagram. (1 mark)
