Each of the following events caused a shift in the AD or AS curve in Canada. Identify which curve was affected for each case and describe the effect on equilibrium real GDP and the price level. 1) World commodity prices increased sharply from 2002 to 2008. Many of these commodities are both produced in Canada and used as important inputs for Canadian firms. 2) The federal government and (many) provincial governments reduced corporate income-tax rates between 2000 and 2015.

Each of the following events caused a shift in the AD or AS curve in Canada. Identify which curve was affected for each case and describe the effect on equilibrium real GDP and the price level. 1) World commodity prices increased sharply from 2002 to 2008. Many of these commodities are both produced in Canada and used as important inputs for Canadian firms. 2) The federal government and (many) provincial governments reduced corporate income-tax rates between 2000 and 2015.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The Canadian government passes a series of tax cuts into law in order to counteract a recession they have been experiencing. All else equal, illustrate the effects of this change in government policy on the aggregate demand curve by shifting it in the appropriate direction. Provide your answer below: Price Level Aggregate Supply Aggregate Demand Real GDP
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