Economics Questions (7,9,12,13,20)

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Many economists viewed the improvement in the American economy in 2016 as excellent news for Canada. In the United States, unemployment fell and average wages rose. Why would strong employment data from the United States bode well for the Canadian economy? O A. Because this indicates a slowdown in the American economy and, therefore, provides a competitive advantage in the world market to Canadian goods. O B. Because Canada has decoupled from the American economy since the 2000s. O C. Because they indicate a growth in the American economy and, therefore, an increase in demand for Canadian exports. O D. Because this causes a positive shift in the American aggregate supply and, therefore, decreases Canadian net exports.Explain how each of these events will affect the aggregate demand curve. a. An increase in the price level will cause a the aggregate demand curve. b. Higher provincial income taxes will cause a the aggregate demand curve. c. Higher interest rates will cause a the aggregate demand curve. d. Higher government spending will cause a the aggregate demand curve. e. Faster income growth in other countries (particularly the United States) will cause a the aggregate demand curve. f. A higher exchange rate between the Canadian dollar and foreign currencies will cause a the aggregate demand curve. Click to select your answer(s)What variable does not cause the long-run aggregate supply curve to shift? Choose the correct answer below. O A. Change in the price level. O B. Change in the amount of physical capital . O C. The available technology. O D. Change in the labour force.What variable does not cause the AD curve to shift? Choose the correct answer below. O A. Exchange rate between the Canadian dollar and foreign currencies O B. Firms' expectations of the future profitability O C. Personal income taxes O D. Price levelThe following graph shows aggregate demand and short-run aggregate supply. Price level 1.) Use the line drawing tool to show the effect of an increase in taxes. Properly label this line. 2.) Use the point drawing tool to show the new equilibrium price level and real GDP. Label this point 'B'. SRASO Carefully follow the instructions above, and only draw the required objects. A ADo YO Real GDP (Y) Click the graph, choose a tool in the palette and follow the instructions to create your graph