Go to the website httpresearchstlouisfedorgfred2categories32268 (or go to FRED, in the webpage of the Federal Reserve Bank of St Louis, and select International Data and then Canada) a. Consider the inflation rate for Canada

i. Look at the GDP deflator data for the first 2 quarters of 2012 (Q1 and Q2); the variable is ”GDP implicit price deflator in Canada, Quarterly, Seasonally Adjusted (CANGDPDEFQISMEI)”. Using this information, compute the inflation rate for 2012 Q2.

ii. Look at the CPI data for the first 2 quarters of 2012 (Q1 and Q2); the variable is ”Consumer price index of All Items in Canada, Quarterly, Not Seasonally Adjusted (CANCPIALLQINMEI)”. Using this information, compute the inflation rate for 2012 Q2.

iii. Is the inflation rate computed in i. different from the inflation rate computed in ii.? If yes, explain the possible reasons for this difference.

b. Consider GDP for Canada.

i. Look at the Nominal GDP data for the first 2 quarters of 2012 (Q1 and Q2); the variable is ”Current Price Gross Domestic Product in Canada, Quarterly, Seasonally Adjusted (CANGDPNQDSMEI)”.Using this information, compute the growth rate of Nominal GDP for 2012 Q2.