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In: Economics

Using the AS-AD model, show how the following events will impact real GDP and price level...

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

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