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15. If the AD curve were to shift to the right, then in the short run...

15. If the AD curve were to shift to the right, then in the short run there would be:

A) an increase in aggregate output and an increase in the price level.

B) an increase in aggregate output and a decrease in the price level.

C) a decrease in aggregate output and a decrease in the price level.

D) a decrease in aggregate output and an increase in the price level.

16. The Bank of Canada plays a key role in fighting slumps and promoting recovery because it:

A) determines tax rates.

B) determines government spending.

C) conducts monetary policy.

D) is responsive to the people who elected its members to office

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Answer #1

Q15
Answer
Option
A

The increase in AD shifts the AD to the right which increases both price level and output in the economy
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Q16
Answer
Option C
Bank of Canada conduct monetary policy and bad debts are not good for the economy so it promotes loan recovery

The tax ad government spending is a part of fiscal policy and interest rate and money supply are part of monetary policy.

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