1. The current pandemic had a major impact on the Canadian retail sector,effectively leading to major layoffs of retail workers. Now, many of those laid off workers have been rehired. (10 Marks)

a. What effect has the rehiring of workers in the retail sector had on unemployment and inflation? (5 Marks)

b. What are the effects on aggregate supply for the retail sector for the short-term? Which portion of the short-run aggregate supply curve is Canada in currently? Why?