Global Factors and Economic System's Status of Canada

Starting in 2020, individuals, businesses, and governments (all players in economic systems) are tackling with covid-19 pandemic and putting lots of effort and resources to heal the world. Recently, the world was shocked by the news of the Ukraine-Russia war in which Russia invaded Ukraine for political reasons. All these forces are playing role in changing the economic status of Canada and all other countries.

In Canada, according to Statistics Canada:

• The Consumer Price Index (a measure of inflation) rose 6.8% year over year, almost double in rate when compared to the rate in April 2021.
• The unemployment rate fell to a record low in April 2022.
• The real GDP grew 1.6% in the fourth quarter of 2021 following a 1.3% rise in the third quarter.
• The price of regular gasoline at stations rose from 114.6 cents per liter to 140 cents per liter in December 2021 to 173.8 cents per liter in April 2022.

Questions:

1- How do you analyze the relationship between the covid-19 pandemic and war situations to the economic situation in Canada by looking into the indicators including inflation, oil price, real GDP, and unemployment rate?

2- In order to stabilize the economy, do you think the government of Canada should intervene? If yes, through which mechanism/ tools the government can bring the economy back to its normal status where there is normal growth of the economy, the stability by normal rate of inflation (2%-3%), and the unemployment rate?