The Winter of 2015 Saw Ridiculous Levels of Snowfall in the Maritimes

question 239

Essay

The winter of 2015 saw ridiculous levels of snowfall in the Maritimes and parts of eastern Canada.As a result, there were unexpected closures of business and government offices.Suppose that this caused an increase in the price level and a decline in real GDP in 2015.Also assume that potential real GDP continued to grow due to other factors.You can assume the aggregate demand curve did not change. Show the macroeconomic equilibrium for 2014 and 2015 using the dynamic aggregate supply and aggregate demand model.

Comprehend the significance of the GDP deflator and inflation in the economic context.

Identify and explain the major components of national income.

Recognize the role of investments, government spending, and net exports in the economy.

Understand how economic growth and inflation affect real GDP per capita.

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Definitions:

Center of Gravity

The point in an object where its mass is concentrated, and around which its weight is evenly dispersed when in a uniform gravitational field.

Base of Support

The area beneath an object or person that provides support and stability.

Narrows

A geographical feature where a body of water is constricted between two landforms.

Bedridden

A state in which a person is unable to rise from bed due to illness or disability.