1. A few years ago Canada introduced a new immigration category- called the experience class. The class allows the fast tracking of immigrants who have at least two years of Canadian work experience or have graduated from a Canadian university. Explain how this policy would impact potential GDP.
For the following two scenarios, explain what happens in the short-run to the price level and real GDP.In your analysis please utilize the concepts of aggregate supply and aggregate demand.
2. Economic growth has increased in the past few months in the United States.
3. Driven by a surging stock market and increased confidence in the global economy, Canadians have increased optimism about the future of economic growth.
4. The government of Canada is thinking of allowing Canadian companies to fully write off all R & D costs. Discuss the impact this policy will have on the Canadian economy from a short-run and long-run perspective.
5. The Bank of Canada decides the Canadian economy is overheating. Explain how they would react and the process by which they would slow down growth.