Please answer the following questions correctly:

Q.1. How does the use of money differ from the use of barter in the exchange of goods and services?

This is a 5-mark question. Be sure to include enough points and explanation considering this is a short essay style question.

Q.2. Suppose you are the Governor of the Bank of Canada and the economy is experiencing an 8 percent inflation rate. Unemployment is at the full-employment level and the target interest rate is currently 4 percent. What change in the target interest rate would you want to make? How would this change get implemented? What impact would those implementation actions have on the lending ability of the banking system, the real interest rate, investment spending, aggregate demand, and inflation?

Q.3. Considering the variables included in the expenditure approach to GDP discussed in this course:

(i) Discuss how each variable was impacted by the COVID-19 pandemic.

(ii) Be sure to include the terminology and rationalizations used in this course to justify your answer.

Please be mindful that this question is worth ten marks so be sure to include an appropriate level of detail to explain both the variable, the impact, and the reasoning for the impact you described.

Q.4. Why do economists measure growth in an economy using real GDP rather than nominal GDP? Can you suggest a better measure?

Note - Use your own words and understanding. I will not accept standard definition answers, answers copied off the internet, answers copied from a classmate and then rogetted, formulas, etc. I am looking for your own interpretation of these concepts.

Q.5. Compare and contrast the CPI with the GDP Deflator.

Note - Use your own words and understanding. I will not accept standard definition answers, answers copied off the internet, answers copied from a classmate and then rogetted, formulas, etc. I am looking for your own interpretation of these concepts.

Q.6. How might poorer nations catch up to richer countries in terms of GDP per capita?

Note - Use your own words and understanding. I will not accept standard definition answers, answers copied off the internet, answers copied from a classmate and then rogetted, formulas, etc. I am looking for your own interpretation and understand of this concept.