In the market for loanable funds, there is a demand and supply of loanable funds represent as the following equations:

Demand: r =8.2 - 0.003Q Supply: r = 0.002Q

Suppose that the interest rate is 6.28%, calculate the shortage or surplus of funds in the market. You only need to provide the number.

Suppose that the typical Canadian spends 60 percent of their income. There is an income tax rate is 20% per period. If the government wanted to see the effect of a tax cut of $800 billion. What is the overall AD or output after the multiplier effect?

Scenario: There has been a backlog of goods in the ports of Canada, all producers are suffering due to the lack of transport chassis that is causing a decrease in the amount of raw materials being delivered that they need to produce their finished products. Suppose that the Canadian government decides not to initiate fiscal policy. What will happen to the Canadian economy in the long run if it naturally adjusts?

\fA B C D LRAS AS LRAS AS LBAS LRAS AS: ASI ASI ASI ADI ADI AMADI AD% AD: E F G H LR LR. AS, LR, LR. ASI LRAS LRAS ASI ASI ADDOF AS ASI AS: ADI AD: AD: ADI Q Q Figure (AD/AS) in the long run