What evidence does GI present to support the view that Canada had entered a recovery?.
. In 2012, the Canadian dollar appreciated against the US dollar. Explain the effects of this appreciation on each of the following. (10 marks)
a. Canadian importers of goods from the US
b. Canadian firms that sell commodities to US buyers
c. American tourists who come to Canada
d. US investors who had purchased Canadian securities prior to this currency appreciation
1. Global Insight (GI) forecasting firm predicted that the Canadian economy will bounce back by a stronger than expected 1.0% on annualized basis in the third quarter of 2012 and with a further 0.1% in the fourth quarter of 2012. The firm also expects moderate growth overall in 2013. (10 marks)
a. What evidence does GI present to support the view that Canada had entered a recovery?
b. Use a short-run Phillips curve to explain why the inflation rate may increase over the course of 2012.
Under what circumstances might the inflation rate not
What evidence does GI present to support the view that Canada had entered a recovery?
