Question: 1. Beginning with output equal to potential, suppose there is a sudden increase in demand for Canadian exports. This is a(n) shock to the Canadian

1. Beginning with output equal to potential, suppose there is a sudden increase in demand for Canadian exports. This is a(n) shock to the Canadian economy, which will result in the curve shifting to the and the opening of a(n) gap. Firrns' unit costs will start to and the curve will shift . Long-run equilibrium will be restored at output and price level

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