Each of the following events caused a shift in the AD or AS curve in Canada. Identify which curve was affected for each case and describe the effect on equilibrium real GDP and the price level. 1) World commodity prices increased sharply from 2002 to 2008. Many of these commodities are both produced in Canada and used as important inputs for Canadian firms. 2) The federal government and (many) provincial governments reduced corporate income-tax rates between 2000 and 2015.

Each of the following events caused a shift in the AD or AS curve in Canada. Identify which curve was affected for each case and describe the effect on equilibrium real GDP and the price level. 1) World commodity prices increased sharply from 2002 to 2008. Many of these commodities are both produced in Canada and used as important inputs for Canadian firms. 2) The federal government and (many) provincial governments reduced corporate income-tax rates between 2000 and 2015.

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter33: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 4CQQ

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