Question: Question 2 (3 points) Explain the recent high inflation rate (higher CPI level), and high unemployment rate in Canada. 1. Draw the aggregate demand and

Question 2 (3 points) Explain the recent high inflation rate (higher CPI level), and high unemployment rate in Canada. 1. Draw the aggregate demand and supply curve, and consider the shifts in the AS and AD to explain this trend; (1 point) 2. Why is Bank of Canada considering increase interest rate? List out the monetary policies that could help to achieve this goal. (1 point) 3. What are the impacts from an increase in the interest rate to the economy? Elaborate. (1 point)

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