Answer the following questions.

1.Some economists argue that Inflation numbers calculated by CPI are not accurate especially during the pandemic. Explain why do they believe inflation numbers are not that accurate during pandemic? You can read more about limitations of CPI in the website of the Bank of Canada: (30 points)https://www.bankofcanada.ca/2020/08/understanding-consumer-price-index/

2.Using the FRED economic database find time series of real GDP for a country of your choice for at least the last 20 years and answer the following questions: (You have to submit a graph for the data with your answer) (30 points)

a.In which year(s) and the country have a recession if any?

b.What do you expect to happen to the unemployment rates during the recession? How about expansion?

c.Using FRED economic database find unemployment data for the same country and the same time period and support your answer with real data.

3.Use the following table to answer the following questions.(25 points)

Year

Price of Burgers

Quantity of Burgers

Price of Magazines

Quantity of Magazines

2013 $4.00 100 $2.00 180

2014 $5.00 120 $2.50 200

a.Calculate GDP for 2013 and 2014 using 2013 as the base year.

b. What is the economy's inflation rate?

4.What is the difference between investment in the economic terminology and daily language?(15 points)