In: Economics
Using the AS-AD model, show how the following events will impact real GDP and price level in Canada:
1) USA is a big purchaser of Canadian goods and there is a boom in the U.S. economy
2) The Canadian exchange rate goes up (i.e. CAD dollar becomes stronger)
3) Due to Toronto Raptors winning the NBA, there is a rise in popularity of Canadian goods in foreign countries
4) The Indian government reduces trade restrictions on Canadian goods