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1. Explain the inuence of each of the following events on the quantity of real GDP supplied and aggregate supply in India and use a graph to illustrate. US. rms move their call handling, IT, and data functions to India. Wal-Mart and Starbucks open in India. Universities in India increase the number of engineering graduates. Fuel prices rise. The money wage rate rises. The price level in India increases. The Fed cuts the quantity of money and all other things remain the same. Explain the effect of the cut in the quantity of money on aggregate demand in the short run. . Canada trades with the United States. Explain the effect of each of the following events on Canada's aggregate demand. The government of Canada cuts income taxes. The United States experiences strong economic growth. Canada sets new environmental standards that require power utilities to upgrade their production facilities