2.
Choice of Theme: (Either select one from the list or select the topic of your
choice)
i.
Selected Theme: Macroeconomics
ii.
Problem Statement: The central problem area for our proposed macroeconomic project
focuses on understanding the correlation between the wages earned by individuals in Canada
and the fluctuations in the Consumer Price Index (CPI). This encompasses an evaluation of
whether wage growth keeps pace with the cost of living and how macroeconomic variables
impact these dynamics.
ii) a).Objective of the Research:
1. Wage-CPI Relationship: Investigate the connection between wage levels in Canada and
changes in the Consumer Price Index.
2.
Inflation Impact: Examine the influence of inflation on wage growth and assess whether
wages are adjusted to maintain purchasing power.
3.
Economic Stability: Evaluate the role of economic stability in preserving real wage
growth.
ii) b). Research Questions:
1. How do wage levels in Canada correlate with variations in the Consumer Price Index,
and is this correlation influenced by inflation?
2.
Are wage adjustments keeping pace with the rising cost of living, or are Canadians
experiencing wage stagnation in real terms?
3.
How does economic stability factor into the relationship between wages and the CPI?
Introduction to the Theme: Our economic research project in the field of macroeconomics is
designed to explore the intricate relationship between wage levels in Canada and the Consumer
Price Index (CPI) of Canada. This undertaking is aimed at gaining comprehensive insights into
how wages are influenced by changes in the cost of living, inflation, and economic stability.
Problem Description: The central problem area for our proposed macroeconomic project
focuses on understanding the correlation between the wages earned by individuals in Canada
and the fluctuations in the Consumer Price Index (CPI). This encompasses an evaluation of
whether wage growth keeps pace with the cost of living and how macroeconomic variables
impact these dynamics.
Identified Variables:
 -Average Wage Levels in Canada
 -Consumer Price Index (CPI) of Canada
 -Inflation Rates
 -Economic Stability

Objectives of the Project:
 Wage-CPI Relationship: Investigate the connection between wage levels in Canada and
changes in the Consumer Price Index.




Inflation Impact: Examine the influence of inflation on wage growth and assess whether
wages are adjusted to maintain purchasing power.
Economic Stability: Evaluate the role of economic stability in preserving real wage
growth.

Key Questions to Be Answered:
 How do wage levels in Canada correlate with variations in the Consumer Price Index,
and is this correlation influenced by inflation?
 Are wage adjustments keeping pace with the rising cost of living, or are Canadians
experiencing wage stagnation in real terms?
 How does economic stability factor into the relationship between wages and the CPI?

Expected Results: The expected results encompass a better understanding of the dynamics
between wage levels in Canada and the Consumer Price Index. We anticipate insights into
whether wage growth is sufficient to preserve real purchasing power for Canadians in the face
of inflation.
Stakeholders:
 Government and Policymakers: Use project findings for evidence-based labor and
economic policies.
 Workers and Labor Organizations: Benefit from wage policies informed by CPI
relationships.
 Employers and Businesses: Make informed decisions about wage adjustments.
 Economists and Researchers: Contribute to the knowledge base of macroeconomic
relationships.


General Public: Gain insights into the implications of wage and cost of living dynamics.
The project aims to illuminate the interplay between wages and the Consumer Price Index,
providing valuable insights for policymakers, workers, businesses, and the general public in
Canada.