Question 12

Utilizing the AD/AS model, elucidate how a sudden decrease in oil prices could lead to deflation in the economy.

1. In your response, delineate a factor external to the pandemic that impacts both (i) aggregate demand and (ii) aggregate supply, culminating in deflation. Additionally, elucidate how these dual forces interact to precipitate deflation.
2. Question 13

Drawing upon the concepts covered in this course, elaborate on three distinct fiscal policy initiatives that the federal government could undertake and their potential impacts.

This response is valued at 15 marks.

You must provide three separate paragraphs, each dedicated to explaining a different fiscal policy initiative.

Question 14

Reflecting on the variables involved in the income approach to GDP as elucidated in this course:

(i) Explore how each variable may be affected by changes in government fiscal policy.

(ii) Employ appropriate terminology and theoretical frameworks from the course to justify your analysis.

Given the ten-mark weight of this question, ensure your answer provides a thorough examination of the potential impacts on each variable and the rationale behind these effects.

Question 15

Compare and Contrast the utilization of money with the practice of barter in the exchange of goods and services.

Question 16

Discuss the challenges posed by time lags in implementing and executing fiscal policy, providing a critical assessment of their impact.

Question 17

What phase of the business cycle is the Canadian and Ontario provincial economy experiencing at the present time? Justify your answer.

Question 18

Using your own words, describe the basic features of the circular flow model, provide examples from the Canadian context.

Question 19

Outline potential strategies for less developed nations to narrow the gap with wealthier countries in terms of GDP per capita.

Offer your own insights and understanding, avoiding standard definitions or copied content.

Aim to provide a personal interpretation of how these countries can enhance their economic development and prosperity. Your response should be between 250-300 words.