Test 2

Answer the each of the following questions three in no more than two paragraphs PER QUESTION.

Each question is graded out of 10. You will be required to do some reading and research on the interest to answer these questions, so please do not leave it until the last minute.

**DO NOTCOPY AND PASTE ANSWERS FROM ANY SOURCE, ALL ANSWERS COPIED WILL BE INVALIDATED(a maximum of 10% non-original work will be accepted in the originality report).

Questions

1. 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?

1. Provide detailed explanations regarding demand and supply to explain the following events for the air travel market:
   1. Expectations of decreases in incomes of households.
   2. A substantial increase in the price of bus fares.
   3. A drop in the number of airline workers due to Covid-19.

1. Canada's unemployment rate is high, above 9%. According to the following what should Canadian economists do to reduce unemployment:
   1. Classical economists
   2. Say's Law theorists