Question 1:

This problem deals with the lock-down policy (physical distancing and self-isolation) implemented in Canada to slow the spread of contagion of the COVID-19 virus (coronavirus).The partial and total lock-downs have caused a significant (exogenous) decrease in the level of consumption and investment in Canada.

Check if the following statement is true or false, "All else equal, the exogenous decrease in consumption and investment (i) has shifted up the aggregate demand curve in the Keynesian cross diagram and this, in turn, (ii) has decreased the level of income (output) in Canada."

No credit without explanation. Use a Keynesian cross diagram to support your answer and explain why the aggregate demand shifts and why and how the level of income changes. In addition, use an equation of the aggregate demand to support your intuition.

Question 2: Answer all questions below

A construction firm can achieve a $ 20,000 cost savings in Year 1 and it is expected to increase by $ 3,000 each year for the next 5 years by upgrading some equipment. At an interest rate of 12% what is the equivalent annual worth of the savings? The value is closest to? a. $ 21,500 Ob. $ 28,500 O c. $ 26,500 O d. $ 31,5002. A survey of a sample of business students resulted in the following information regarding the genders of the individuals and their selected major. (25 pts) Selected Major Gender Economics Finance Others Total Male 60 140 40 240 Female 40 60 60 160 Total 100 200 100 400 a. What is the probability of selecting an individual who is majoring in Economics? b. What is the probability of selecting an individual who is majoring in Finance, given that the person is male? C. What is the probability that an individual is a female and majoring in Others? d. What is the probability that an individual is either a female or majoring in Finance? e. What is the probability of selecting an individual who is either majoring in Finance or in Economics?23. What is the crucial difference between inflation generated on the demand side versus inflation generated on the supply side? b . a. Demand-side inflation is short-lived, while supply-side inflation lasts for a long time Demand-side inflation leads to budget surpluses, while supply-side inflation contributes to budget deficits. C. Supply-side inflation is subject to control of policy makers, while demand-side inflation is beyond their reach. d. Demand-side inflation is normally accompanied by rising real GDP, while supply- side inflation may be accompanied by falling real GDP 24. Which of the following could trigger supply-side inflation? a. a decrease in the wage rate for all workers b. an increase in raw materials' prices c, an increase in productivity of capital d. an increase in the labor force 25. At the natural rate of unemployment, the long-run Phillips curve has a(n) a. vertical slope b. horizontal slope. c, upward slope. d. downward slope. D1 Do B Figure 1 Price Level D1 S Do Real GDP Which of the following is true about the economy depicted in Figure 1? a, It is experiencing supply-side inflation. b, Policy makers have chosen to fight inflation rather than unemployment. c, The increase in aggregate demand has increased prices but not real GDP. d, The slope of the aggregate supply curve embodies the trade-off between unemployment and inflation.e.com/courses/28150/quizzes/116887/take D Question 5 20 pts 1. What is accomplished with the following python code i = Image(width, height) 2. What is accomplished with the following python code? >>> from images import Image >>> image = Image("smokey.gif") > > image.draw() 3. Describe two fundamental differences between terminal-based user interfaces and GUIS. HTML Editorin O hp