due to a fiscal policy shock, as compared to when the rise in output is due to a positive technology shock. The cross ….75 when the rise in output follows from a favorable output shock. …

the variation in the GDP in Canada. My findings suggest that TFP news shock is the key driver of GDP in the medium run and … it creates significant positive co-movements among the aggregate variables at business cycle frequencies. Demand shock … dominates in the short run, however, its hard to pin down the exact source of the shock. The findings are robust to alternative …