1. The price of a barrel of oil is up to $80 in the last few weeks in November of 2021. (10 Marks)

a) Economists have been making predictions regarding the Alberta economy in 2022. Describe the possible effects of these oil prices on the Alberta economy in 2022 regarding unemployment, inflation, investment, and GDP.

b) If you were the Alberta finance minister, outline any fiscal measures you would take (if any) to change the economic outlook for 2022?

2. The Canada emergency wage subsidy or (CEWS), was designed so businesses could keep their employees on payroll during the Covid-19 pandemic. Earlier this fall, this program was largely phased out. (10 Marks)

a) What would be the effects on the Canadian economy when this tool is phased out?

b) Discuss any possible risks to phasing out this tool.