You are a policy advisor in your provincial government's Department of Finance.Your employer has asked you to assess the current economic trends in your province using the principle economic measures.

Below are the values of the three principle economic measures for Ontario for the 2nd quarter of 2020 (April, May, June)

GDP growth rate:-12.3%

Unemployment: 12.5%

Inflation: 0.7%

a) How do these values compare to government targets?(/3 knowledge)

b) What do these measures suggest about aggregate demandDraw a freehand graph to help explain your conclusion.(/2 knowledge,/2 communication)

c)Using the business cycle, explain the direction in which the economy is moving and suggest the dangers that lie ahead if it should continue to move in the same direction.(/4 knowledge)

d)Should an expansionary or contractionary fiscal policy be implemented?(/1 thinking)

e)How would you recommend the tools of fiscal policy be implemented?(/4 application)

f)How would these fiscal policy actions influence the circular flow of income and aggregate demand?Ensure you are using proper terminology.(/4 application)

g)What time lags needs to be considered when implementing this fiscal policy?Why must these be considered?