thought it was ok... pretty straight forward...
with Q7 when AD is increased in an economy at NAIRU,
isnt the answer C as the immediate effect a decrease in unemployment and increase in prices, but after unemployment increases....
and Q12 dont you finance a deficit by borrowing domestically to maintain stability
bcz if you sell bonds internationally, it directly worsens the CAD, where as the crowding out effect is indirect...
with Q7 when AD is increased in an economy at NAIRU,
isnt the answer C as the immediate effect a decrease in unemployment and increase in prices, but after unemployment increases....
and Q12 dont you finance a deficit by borrowing domestically to maintain stability
bcz if you sell bonds internationally, it directly worsens the CAD, where as the crowding out effect is indirect...