Questions

1.In Canada, the natural rate of unemployment is 6 percent, while in the US it is only 4 percent. Explain why there is a difference between these two countries. How does a country determine its natural rate of unemployment?

2.Looking on the Statistics Canada Website find the data pertaining to the consumer price index. What is the base year that Stats Can is currently using? Why are they using this year? Are there any plans to change this?

3.What has the Bank of Canada targeted as an acceptable level of inflation in Canada? By researching on the internet and the Bank of Canada's website, determine whether the Bank has been successful achieving this target and for how has that success lasted?