Canada has 12 million workers each of which is capable of producing either 5 cars or 50 bushels of wheat in a year. The opportunity cost of producing a car in Canada is bushels of wheat and the opportunity cost of producing a bushel of wheat in Canada is cars. Canada completely specializes in wheat production and decides to trade 150 million bushels of wheat in exchange for 20 million cars with the United States. After trade Canada can consume million cars and million bushels of wheat. Enter numbers rounded to two decimal places as necessary.

Crowding out is a phenomenon focused upon most by the macroeconomists of whereby a government deficit interest rates, which in turn private investment spending. this group also believed that fiscal policy is the only thing that can lower natural unemployment. is just as effective in countering recessions as monetary policy. can be used most of the time, but monetary policy becomes a better option when velocity is fluctuating. should be used only if the central bank follows a monetary policy rule. faces problematic lags in propagating changes throughout the economy.