This is the last discussion and will focus on material from the last two lectures, there will be questions related to other material/concepts from previous parts of the course. The reading for this is from thisarticle https://www.cbc.ca/news/politics/highlights-from-2023-federal-budget-1.6792512 .by the CBC reviewing the main points of the 2023 Canadian Federal Budget.

1. The Budget lays out the plan for what type of policy? Can we view this as policy by discretion or policy by rule (your answer here will be somewhat normative, i.e. opinion based)? Support your argument using the information in the article.
2. One big part of the announcement was the "grocery rebate." What is this? Is this policy a general policy that will affect all Canadians equally or a targeted policy? Why is the government doing this? How is it similar to the Dental policy?
3. Neither of the policies above are expected to have much influence on inflation, despite being expansionary policies. Why might this be the case?
4. The government has announced it expect the deficit to increase and is creating a tax credit for business doing green investment. Using the market for Loanable Funds, what do you expect the long run impact will be for the Canadian economy (reminder: Canada currently has a trade deficit orNX<0<0)?
5. Our final question will focus on some of the proposals associated with the labour market. The government plans to increase the strength of unions (via anti-scab laws that prevent/limit replacement workers). Increase government grants to students while also working to make it easier for students to match with employers (i.e. lower job search frictions). Finally, the government is planning to increase the benefit to skilled trades people via larger tax deduction for tools. Consider 3 markets: unionized labour, university graduate labour, and tradespeople labour. How do the programs adjust each market (or not)? Could the programs influence the AD/AS model?