1. Economic data shows housing markets in Canada was very strong since the second quarter of the 2020. Refer the following data about investment in building construction from Statistics Canada. Why do you think the housing market was strong during the mentioned period? How did the observed trend in the housing market change the aggregate demand and GDP? (15 points)

2. The discussion paper and aboriginal peoples surveys provided below indicate that unemployment rate among aboriginal people in Canada is much higher than non-aboriginal people. Do some research to find out why and based on your findings provide a policy recommendation for improving economic growth in Canada by helping aboriginal people. Write a minimum 400 words and in your answer refer to the economic terminology that you learned in the class. (40 points)

Discussion Paper

(https://indigenousworks.ca/sites/ahrc/files/attachments/2006_champions_labourmarket_0.pdf)

Aboriginal Peoples Surveys

(https://www150.statcan.gc.ca/n1/pub/89-653-x/89-653-x2019004-eng.htm)

(https://www150.statcan.gc.ca/n1/pub/89-653-x/89-653-x2019002-eng.htm)

3. Under what condition(s) negative economic impacts of the COVID-19 pandemic could affect the long run economic growth of Canada? Explain at least two situations and write a minimum of 200 words. (35 points)

4. What impact would each of the following have on real GDP? Would economic well-being increase or decrease as a result? (10 points)

a. On average, people in a country decide to increase the number of hours they work by 5%.

b. Spending on homeland security increases in response to a terrorist attack.