(Answered) Global insight gi forecasting firm predicted that the

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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.

What evidence does GI present to support the view that Canada had entered a recovery?
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 increase during 2012?

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