Consider the following scenarios and briefly explain how each scenario would affect short-run aggregate supply (SAS), long-run aggregate supply (LAS) or aggregate demand (AD) in Canada. In some situations, more than one may be affected. 1. Canada produces larger number of university graduates who possess higher levels of education and skill.  2. Depletion of resources cause increase in the prices of key inputs in production.  3. Canada’s trading partners experience higher rates of economic growth.  4. Increase in oil prices raises the value of Canadian dollar.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter27: Issues In Macroeconomic Theory And Policy
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q. Consider the following scenarios and briefly explain how each scenario would affect short-run aggregate supply (SAS), long-run aggregate supply (LAS) or aggregate demand (AD) in Canada. In some situations, more than one may be affected.

1. Canada produces larger number of university graduates who possess higher levels of education and skill. 

2. Depletion of resources cause increase in the prices of key inputs in production. 

3. Canada’s trading partners experience higher rates of economic growth

4. Increase in oil prices raises the value of Canadian dollar. 

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