Each part of the question is NOT related to other parts of the question. a) In response to the Covid pandemic, the Bank of Canada had adopted unconventional measures such as increasing the pace/speed of quantitative easing. At the same, the pandemic speeds up the process of moving the Canadian economy towards being a cashless society. What might happen to the long- mn price level in Canada? Explain. (6 points) b) \"Suppose the labour force and (physical) capital stock are growing at a rate of 2.5% and 3% respectively, and the labour share of income is 60%. In addition, the total factor productivity is increasing at 0.8%. [fthe velocity of money is rising at 2% and the central bank wants to obtain a target of ination at 1.5%, then it should set a monetary growth rate of 5.5%.\" True/False/Uncertain, explain. (6 points) Note: All the growth rates are annual rates. c) Suppose you are given the following information: Real money demand Jnction: L(i, Y) = 0.25Y 200i Output: Y = 8000 Money supply: MS = 3200 If the equilibrium real interest rate (r) is fixed at 4% and expected ination rate is 2%, nd the equilibrium price level and the real money balance. (6 points) Note: Both nominal and real interest rates and the ination rate are measured in percentage points, so if the interest rate is 5.7% this would be written as 5.7. d) From Year 1 to Year 2, total employment increased by 427,400 workers, but the number of unemployed declined by only 182,600. How are these numbers consistent with each other? Why might one expect a reduction in the number of people counted as unemployed to be smaller than the increase in the number of people employed? Explain. (7 points)