Question
1.Using the FRED economic database find time series of CPI and Implicit price deflator (which is another name for GDP deflator) for Canada for the
1.Using the FRED economic database find time series of CPI and Implicit price deflator (which is another name for GDP deflator) for Canada for the period of 2000- 2020 and answer the following questions: (You have to submit a graph for the data with your answer)
a.What is the difference between two time series? In particular, what does the difference between the two variables?
b.Is there a period in which CPI is higher than Implicit price deflator? How do you interpret this situation?
c.Is there a period in which Implicit price deflator is higher than CPI? How do you interpret this situation?
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