For each of the following scenarios,state the short-run effect on the AD curve.
a. The price level decreases.
b. The target inflation rate increases.
c. The Canadian dollar falls in value relative to other currencies.
d. Government spending increases.
e. The Bank of Canada becomes more tolerant of deviations from the target inflation rate.

Question

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The Answer of For each of the following scenarios,state the short-run effect on the AD curve.
a. The price level decreases.
b. The target inflation rate increases.
c. The Canadian dollar falls in value relative to other currencies.
d. Government spending increases.
e. The Bank of Canada becomes more tolerant of deviations from the target inflation rate.

For Each of the Following Scenarios,state the Short-Run Effect on the AD