Final answer:
The claim that Canadian prices rose at an average annual rate of about 4 percent over the past 70 years is false. Inflation rates have varied over time, and such a statement oversimplifies the complex economic history of Canada. Accurate historical data from official sources would be necessary to ascertain the true average annual inflation rate.
Step-by-step explanation:
The statement that Canadian prices rose at an average annual rate of about 4 percent over the past 70 years is false. While inflation rates can fluctuate and average out to different figures over various periods, a 4 percent average annual inflation rate is not accurate for such an extended period. Inflation rates in Canada, like in many countries, have varied significantly over the last 70 years. There have been periods of higher inflation, particularly in the 1970s and early 1980s, and periods of lower inflation more recently.
Values such as the Canadian dollar exchange rate in U.S. dollars and productivity levels can impact the perceived cost of goods and services, and both elements are subject to change due to a wide range of economic factors including trade policies, economic growth, and labor market conditions. The productivity level, in particular, does not directly correlate with the inflation rate.