9. Identify the impact of each of the following trends on aggregate demand, the equilibrium price...

 

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9. Identify the impact of each of the following trends on aggregate demand, the equilibrium price level, and equilibrium real output. a) Consumers become more confident about the prospects for the Canadian economy. b) Canadian interest rates rise. c) Political pressure causes an increase in tax rates on households earning high incomes. d) A newly-elected federal government increases its purchases of goods and services. e) The Chinese economy experiences a boom. f) The Canadian dollar falls in value against the US dollar. g) A tumble in the economies of Canada's major trading partners takes place. 9. Identify the impact of each of the following trends on aggregate demand, the equilibrium price level, and equilibrium real output. a) Consumers become more confident about the prospects for the Canadian economy. b) Canadian interest rates rise. c) Political pressure causes an increase in tax rates on households earning high incomes. d) A newly-elected federal government increases its purchases of goods and services. e) The Chinese economy experiences a boom. f) The Canadian dollar falls in value against the US dollar. g) A tumble in the economies of Canada's major trading partners takes place.

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a This will increase consumption Since consumption is a part of AD this shifts AD to the right and r... View the full answer