Test 2 BUS400NAA

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

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 and unemployment. (9 Marks).
   1. Look at inflation rates since 1990. Provide a summary of the rates. Is there a trend, does the rate fluctuate, or is it similar each year?
   2. How has the employment participation rate changed in Canada over the past 50 years? If so, why do you think that is the case?
   3. How does underemployment affect the reported official rate of unemployment?

On the website of Statistics Canada, the Consumer Price Index is for the month of January 2022. This suggests that their goal to provide customers with the most recent information possible is the most logical justification for using this date. This suggests that they will most likely change the date to February 2022 once the February data is available.

1. Provide detailed explanations regarding demand and supply to explain the following events regarding the air travel market (9 Marks):

1. Expectations of decreases in incomes of households - The demand for air travel will rise. The customers are aware that their purchasing power will soon decline since they anticipate that their income will decline in the future. Customers often take advantage of the situation and begin making travel arrangements.
2. Asubstantial decrease in the price of aircraft fuel - Demand for air travel market will increase. This is because of an decreased in the price of the aircraft fuel. Since the price of aircraft fuel decreases, consumers will be attracted due to low rates of travelling expenses nd would prefer travelling by air instead of other transports like bus
3. An increase in the number of airline workers who have returned after recovering from Covid-19 - The market for air travel will see more supply. With their employees, airlines can operate effectively. Some businesses will begin operations or expand their capacity in response to an increase in the number of employees. As a result, the supply will rise
4. Canada's unemployment rate is lower now than it has been for years. Answer the following regarding unemployment concepts (6 Marks):
   1. Explain hyperinflation or runaway inflation.
   2. Provide one historical example of hyperinflation.
   3. How do you think it was caused?