Wen Li: Attempt 1 and they push for higher wages and prices. Question 41 (1 point) Saved The Bank of Canada uses open market operations to a) conduct monetary policy. Ob) limit the risk of banking panics. O c) act as the lender of last resort. O d) set reserve requirements. Question 42 (1 point) Saved An increase in the price level in Canada will have what effect on the aggregate expenditure line? a) Aggregate expenditure will shift downward.Wen Li: Attempt 1 Question 48 (1 point) Saved TRAE N AL Real GOR Y (billions of 7097 dolan) Refer to the above figure. If the Canadian economy is currently at point K, which of the following could cause it to move to point N? O a) The price level in Canada rises relative to the price level in other countries. b) Parliament passes investment tax incentives. O c) The interest rate rises. O d) Household wealth declines.Question 50 (1 point) Saved Governments often attempt to fight a recession by a) increasing spending and cutting taxes which shifts the aggregate supply curve to the right. O b) increasing spending and cutting taxes which shifts the aggregate demand curve to the right. Oc) increasing taxes to increase the supply of loanable funds. ( d) increasing spending and cutting taxes which shifts the aggregate demand curve to the left. Submit Quiz 50 of 50 questions savedO d) 15,800 Question 39 (1 point) Saved Suppose the economy is at a short-run equilibrium GDP that lies above potential GDP. Which of the following will occur because of the automatic mechanism adjusting the economy back to potential GDP? O a) Output will increase. O b) Prices will decline. O c) Wages will rise. O d) Unemployment will decline. Question 40 (1 point) Saved Why does the short-run aggregate supply curve shift to the left in the long run, following an increase in aggregate demand? O a) Workers and firms adjust their expectations of wages and prices upward, and prices