Question no 42 please

10:36 - Done hw 3 - questions_e8b95afe2133bc... Part II: Answers to be Handed In 42. [3 marks For the following events, explain the short-run and long-run effects on output and the price level, assuming policymakers take no action. You need to draw the AD-SRAS- LRAS diagram for the Canadian economy, starting in a long-ran equilibrium. Make sure to illustrate its effect using a well- labeled diagram Assume that there is a large increase in demand for Canadian exports. Show the resulting short-run equilibrium on your graph. In this short-run equilibrium, is the unemployment rate likely to be higher or lower than it was before the increase in exports? Explain it. Explain how the economy adjusts back to long-run equilibrium When the economy has adjusted back to long-run equilibrium, how would the values of each of the following have changed relative to what they were before the increase in exports? a Real GDP b. The price level (CPI) e. The unemployment rate 43.12 marks Suppose that the friends you made on an international trip are thinking of immigrating to Canada. The number of immigrants living in Canada totals 7.5 million according to data from the Statistics Canada's National Houschold Survey. Approximately 1.2 million arrived between 2011 and 2016. At the same time, the percentage of the Canadian population over 65 increased by 16.9 percent, which was double the rate of increase of the country's population as a whole. How will the increased immigration and the aging of Canada affect your standard of living? Explain it using AD- SRAS-LRAS diagram (Source: Statistics Canada, Focus on Geography Series, 2016 Census and 2016 Census topic: Age and sex) 1