Each of the following headlines describe an event that will have an effect on desired aggregate expenditure. What will be the effect of equilibrium national income? In each case, describe how the event would be illustrated in the 45 degree diagram.

a.Covit 19 caused millions of lay offs among Canadians.

b.Russia agrees to buy more Canadian wheat

c.High teck firms to cut capital outlays

d.Finance minister pledges to cut tax rates

U.S imposes restriction on Canadian lumber