Already have answer, Just want a graph for it.

Question 4

Assume that Canada is initially in long run equilibrium with price level of P1 and GDP of Y1. Discuss how each of the following four events would affect aggregate demand, the price level and real GDP of Canada (mentioning how net exports are impacted), using graphs as required

a.There is a sharp rise in Canada's exchange rate

b.A wave of pro-Canadian sentiment sweeps the U.S. and people in U.S. increase their consumption of Canadian goods

c.There is a boom in China, which is a large importer of Canadian agricultural goods

d.Due to a global health concern, there is a travel restriction of foreign travellers coming to Canada

a) When there is a sharp rise in Canada's exchange rate , then the products of Canada become more expensive to other countries, as the result, the aggregate demand in Canada falls and therefore, net exports decrease and price level fall and real GDP falls.

b) The aggregate demand in Canada increases and as net exports also increases since the U.S increase their consumption of Canadian goods and thus price level will rise and real GDP will increases.

c) If there is boom in China, then the consumption also increase which increase the net exports of Canada since their importer demand high of their agricultural goods as the result the aggregate demand increase, net exports increase and price level rise and Real GDP increases.

d) Due to travel restriction, the demand for Canadian goods decreased as the result the aggregate demand falls and net exports decrease , and thus price level falls, and real GDP decreases.