Consider the data shown below for the Canadian Consumer Price Index (CPI), drawn from the Bank of

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Consider the data shown below for the Canadian Consumer Price Index (CPI), drawn from the Bank of Canada's website.

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a. Compute the missing data in the table.

b. Do average prices ever fall in the time period shown? In which year do prices come closest to being stable?

c. Across which two consecutive years is the rate of inflation closest to being stable?

d. In a diagram with the price level on the vertical axis and time on the horizontal axis, illustrate the difference between a situation in which the price level is stable and a situation in which the rate of inflation is stable.

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Macroeconomics

ISBN: 9780133910445

15th Edition

Authors: Christopher T S Ragan

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Question Posted: Mar 14, 2024 12:01 PM

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Consider the data shown below for the Canadian Consumer Price Index (CPI), drawn from the Bank of

Question:

CPI Year (2002 100) CPI Inflation (% change from previous year) 2003 102.8 2.8 2004 104.7 2005 107.0 2006 2.0 2007 2.1 2008 114.1 2.4 2009 114.4 2010 1.8 2011 119.9 2.9 2012 121.6 2013 1.2 2014 125.7

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Macroeconomics

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