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1. Explain what would happen to the value of Canadian currency and short run economic performance of Canada if U.S imposes expansionary monetary policy. 2. Explain transition mechanism for the expansionary monetary policy by using florigen exchange market, bond market, market of money, and AS-Ad model. 3. Explain what lessons policy makers learn from the Philips Curve. 4. Explain two policy recommendations that can reduce the natural rate of unemployment