Question 2 (10 marks):

Go to the following link and answer the following questions:

https://www.pbo-dpb.gc.ca/web/default/files/Documents/Reports/RP-2021-027-S/RP-2021-027-S_en.pdf

Question	Your Answer	Marks
Beyond 2020-21, what does the PBO project as the budget deficits?		2
What predictions does the PBO make about GDP in accommodation and food services, performing arts and transportation by the end of 2021? (compared to pre-pandemic levels)		2
The PBO predicts that GDP will remain below its potential GDP until?		2
What does the International Monetary Fund (IMF) predict for global growth in 2021?		2
How much does the PBO predict US real GDP will grow by in 2021? And 2022?		2

Question 3 (5 marks)

In the space provided below, you are asked to follow a series of instructions:

1. In a carefully labelled diagram, draw an economic equilibrium in the classical range of the aggregate supply curve.

1. Describe a situation that would cause the AS curve to shift to the left.

1. Draw the new AS curve in your diagram above and mark the new equilibrium.