1. Covid-19 has created a global financial crises and now the world has moved into global recession. Describe, how Canadian government is using fiscal policy to manage this difficult time. Discuss important aspects of current fiscal policy and its implications in Canadian and COVID-19 context. (5+5=10 Points)
2. Describe how Bank of Canada is trying to combat current situation caused by COVID-19. Discuss the pros and cons of this new policy. Please provide proper details of your each argument. (5+5=10 Points)
3. Keeping in mind the concept of circular flow of money discussed in class, explain the roles of households and firms in the factor market and the product market. Give one example each of a product market and a factor market. (5+5=10 Points)