Canada’s annual inflation rate was stronger than expected in August, checking in at 3.1 percent. The August rise followed increases of 2.7 percent in July and 3.1 percent in June. Economists had been forecasting a 2.9 percent year-over-year rate of inflation for August.
Explain and draw a graph to illustrate the effect on equilibrium expenditure of the rise in the price level described in the news clip.