Suppose the United States, Canada's largest trading partner, imposes tariffs on Canadian products. This has the effect of making Canadian goods more expensive in the United States. Explain how such a trade policy would affect the aggregate-demand curve in Canada under each of the following conditions.

a. The Bank of Canada has adopted a flexible exchange rate.

b. The Bank of Canada has adopted a fixed exchange rate

Would each of the following groups be happy or unhappy if the Canadian dollar appreciated? Explain.

a. Canadian manufacturing industries

b. Australian tourists planning a trip to Canada

c. A Canadian firm trying to purchase property overseas

1. In 2019, Mark opens up a new vehicle detailing business and creates six additional jobs in his company. If net employment growth in 2019 was 2 percent, what was a likely explanation for this?
4. a. the number of jobs created by new firms was less than jobs created in established firms in 2019
5. b. the number of jobs created by new firms was greater than jobs created in established firms in 2019
6. c. job creation was greater than job destruction in 2019
7. d. job creation was less than job destruction in 2019
12. Explain whether each of the following events will increase, decrease, or have no effect on long- run aggregate supply.
13. a. Canada experiences a wave of immigration.
14. b. Provincial and territorial governments raise the minimum wage to $15 per hour.
15. c. Intel invents a new and more powerful computer chip.
16. d. A severe hurricane damages factories along the east coast.
18. Suppose the French suddenly develop a strong taste for British Columbia wines. Answer the following questions in words and using a diagram:
19. a. What happens to the demand for dollars in the market for foreign-currency exchange?
20. b. What happens to the value of dollars in the market for foreign-currency exchange?
21. c. What happens to the quantity of net exports?

What happens whewhatn the price level falls?

a. Interest rates rise, so firms increase investment.

b. Interest rates rise, so firms decrease investment.

c. Interest rates fall, so firms increase investment.

d. Interest rates fall, so firms decrease investment.

According to international studies, larger GDP per person is associated with which other measures of well-being?

a. longer life expectancy and a higher rate of population growth

b. longer life expectancy and a higher percentage of the population that is literate

c. similar life expectancy and a higher quality of the environment

d. similar life expectancy and a higher percentage of the population that is literate

If a Canadian citizen buys a smart phone made in China by a Chinese firm, what is the impact on net exports and GDP?

a. Canadian net exports and Canadian GDP decrease.

b. Canadian net exports are unaffected, but Canadian GDP decreases.

c. Canadian net exports and Canadian GDP are unaffected.

d. Canadian net exports decrease, but Canadian GDP is unaffected.

Which of the following examples would be included in GDP?

a. a daycare worker looking after their own children

b. a person who volunteers at the Canadian Cancer Society

c. a chef who opens a new restaurant with their family

d. a group of people who pick up garbage along a shore line

When a graph of the money market is drawn with the value of money on the vertical axis, what will happen if the value of money is below the equilibrium level?

a. The price level will rise.

b. The value of money will rise.

c. Money demand will shift left.

d. Money demand will shift right.

John, a Canadian citizen, opens up a 70s-style dance club in Tokyo. What is this an example of?

a. Canadian exports

b. Canadian imports

c. Canadian foreign portfolio investment

d. Canadian foreign direct investment