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Using the AS-AD model, show how the following events will impact real GDP and price level in Canada in the short run. Mention how net
Using the AS-AD model, show how the following events will impact real GDP and price level in Canada in the short run. Mention how net exports will be impacted (with 1-2 lines on why it is getting impacted).
1)USA is a big purchaser of Canadian goods and there is a recession in the U.S. economy
2)The Canadian exchange rate goes up (i.e. CAD dollar becomes stronger)
3)Due to Toronto Raptors winning the NBA, there is a rise in popularity of Canadian goods in foreign countries
4)The Indian government increases trade restrictions on Canadian goods
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