Question 26 (1 point) The economy of Canada experienced a recession in 2020. How can the AS-AD model account for this recession, considering the outbreak of the the novel corona-virus? This outbreak has led to a drastic downward shift in the aggregate demand, because many buyers prefer to stay in their homes these days. This outbreak has led to a drastic downward shift in aggregate supply, since a major part of the labor force is now required to stay home. All of the choices are correct. This outbreak has led to a drastic shift in the aggregate demand to the left, because many buyers expect a significant fall in their wealth after the markets crashed in the last few weeks.Question 29 (1 point) The production of durable goods varies more than the production of nondurable goods because: durables purchases and nondurable purchases are both non- postponable. nondurables purchases are postponable. durables purchases are non-postponable. durables purchases are postponable. Question 30 (1 point) Which of the following best describes the built-in stabilizers as they function in Canada? Personal and corporate income tax collections and transfers and subsidies all automatically vary inversely with the level of GDP. O Personal and corporate income tax collections automatically rise and transfers and subsidies automatically decline as GDP rises. Personal and corporate income tax collections automatically fall and transfers and subsidies automatically rise as GDP rises. The size of the balanced-budget multiplier varies inversely with the level of GDP.Question 28 (1 point) This table shows domestic supply and demand schedules for a product. Suppose that the world price of the product is $1. Quantity supplied Price Quantity demanded (domestic) (domestic) 12 $5 2 10 4 4 7 7 4 2 11 16 With a $1 per unit tariff, the quantities sold by foreign and domestic producers respectively will be: 11 units and 4 units. indeterminate. 1 unit and 15 units. 7 units and 4 units.Question 27 (1 point) This balance sheet shows the assets and liabilities of the ABC National Bank. Assume the desired reserve ratio is 20 percent. Assets Liabilities and net worth Cash Reserves $27,000 Demand Deposits $110,000 Securities 50,000 Stock shares 200,000 Loans 33,000 Property 200,000 This chartered bank has excess reserves of: $0 $3,000 $5,000 $12,000