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For each of the following state whether you would make an aggregate demand or aggregate supply diagram and forecast what shift each condition would cause in the AS or AD curve and why so. Suppose full employment at the starting point in each case.

[1] The Bank of Canada decreases interest rates.
[2] The Canadian government increases spending on new programs.
[3] A booming economy in the United States increases Canadian exports.
[4] Canadian corporate tax rates are reduced.
[5] Canadian personal income tax rates increase to help fund the public debt.

 

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9309658

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