4.What is the Laffer Curve and how does it relate to supply-side economics? Why is determining the location of the economy on the curve so important in assessing tax policy? (10 Marks)

5.What is offshoring of white-collar service jobs and how does that practice relate to international trade? Why has offshoring increased over the past few decades? Given an example of how offshoring can eliminate some Canadian jobs while creating other Canadian jobs? (10 Marks)

6.Explain how an upward-slopping aggregate supply curve weakens the impact of a rightward shift of the aggregate demand curve? In the late 2008 consumption and investment spending sharply declined in Canada because of the spread of the global financial crisis. Use AD-AS analysis to show the impact on real GDP. (10 Marks)

7.What is investment schedule and how does it differ from an investment demand curve? By how much will GDP change if firms increase their investment by $8 billion when MPC is 0.80? When the MPC is 0.67? (10 Marks)