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Using the FRED economic data set, collect inflation for Canada using both implicit price deflator and CPI and answer the following questions: (35 points) What
- Using the FRED economic data set, collect inflation for Canada using both implicit price deflator and CPI and answer the following questions: (35 points)
- What does the index 2015=100 mean?
- What is the difference between two data series?
- What was the rate of inflation in the first quarter of 2021 based on each measure? Provide an economic explanation why one is greater than the other. (Hint: you can think of relative price of consumer goods to all goods)
- Which data is more widely used by policy makers including Bank of Canada?
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