In 2019 the federal government decreased interest rates for banks three times. Shortly after, POTUS tweeted the following Would be so00 great if the FED would further lower interest rates and quantitative ease. The Dollar is very strong against other currencies and there is almost no inflation. This is the time to do it. Exports would zoom! December 17, 2019 A. Define the type of economic policy inferred by the scenario and describe how it impacts the economy. B. Describe why POTUS has no power to control the implied power inferred to by the scenario above. C. Describe how a change in political party leadership could effect the outlined scenario above.

Suppose the evening news anchor announces that "The Bank of Canada Raises the Target Overnight Rate for the First Time This Year." What is the Bank of Canada trying to do? a. Offset a possible rise in the inflation rate b. Increase exports C. Decrease unemployment O d. Stimulate the economy

According to the Keynesian framework, ___________ may cause a recession, but not inflation a. a decrease in interest rates b.a decrease in a major trading partners export prices c. a major trading partner's economic slowdown d. an increase in domestic investment

When current output is less than potential output, the economy must have which of the following? ( Pick 1 Answer) A. Trade deficit B. Rise in inflationary expectations C. Increasing wages D. Cyclical unemployment

K In 2007 and 2008, Canada was affected by the global financial crisis that had begun with the U.S. housing collapse. By 2009, the Canadian economy had entered a recession, largely due to a reduction in investment and a The policy objective for the Bank of Canada and the government at this time was to OOOOO A. fall in housing starts; shift the AD curve to the left to close the recessionary output gap B. fall in net exports, shift the AS curve to close the inflationary output gap C. fall in consumption; shift the AD curve to the left to close the recessionary output gap D. fall in consumption; shift the AD curve to the right to close the inflationary output gap E. fall in net exports, shift the AD curve to the right to close the recessionary output gap

1. What are so-called heterodox adjustment programs? Are they a sound long-term approach? 2. Use the IS/LM/BP graph to illustrate the effects of a revaluation. Show the fiscal and monetary policy changes that would make it more likely that a revaluation will succeed in eliminating a payments surplus.  

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Question 5A Starting from a baseline Long Run Steady State Equilibrium (LRSSE), the federal reserve increases interest rates. i. What kind of policy is this (Monetary or fiscal; ii. iii. expansionary or contractionary? How do you know? As a response which curve will start shifting in which direction? Why? How will this policy make the economy move away from the baseline Long Run Steady State Equilibrium (how would it change unemployment or price level relative to the long run steady state equilibrium )? iv. Draw a graph to show the changes to the long run steady state equilibrium (LRSSE).

Note: don't use chat gpt.

Consider the following shocks: A. The government cuts the personal income tax B. Firms expect a recession in the coming years C. A country the US trades with experiences an economic slowdown D. The government cuts unemployment benefits E. The central bank decides to cut the money supply F. US dollar appreciates against other currencies G. The government cuts its spending on infrastructure H. The government of a country the US trades with introduces tariffs on US-produced goods I. There is a stock market crash. For each shock: 1) explain which component of aggregate expenditure would the shock affect and why; 2) Illustrate in the (Y, P) coordinates how the shock would affect the position of the AD curve 3) explain how the shock would affect equilibrium output and the price level in the economy according to the classical school of economic thought (aka the long run approach)