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Identify the impact of each of the following trends on aggregate demand, and the equilibrium price level and real output (GDP) for the Canadian economy.
Identify the impact of each of the following trends on aggregate demand, and the equilibrium price level and real output (GDP) for the Canadian economy.
a)(2 marks) Canadian interest rates rise.
b)(2 marks) Political pressure to increase taxes.
c)(2 marks) Newly elected government increases spending on infrastructure.
d)(2 marks) The value of the American dollar falls.
e)(2 marks) The value of the Canadian dollar falls.
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