The Canadian Economy
With a population of over 30 million Canada is one of the world's largest and strongest economies. Canada enjoys a desirable standard of living, an excellent infrastructure, a highly educated and skilled labor force as well as a well-deserved reputation as a successful trading nation. Canada's economy has not always been this way. In the late 1980's, right around the 4th quarter of '87 the Canadian economy hit a peak. The economy had just recovered from a trough earlier in the year, but what they didn't realize at the time was that they were heading back down into another trough, which they would eventually bottom out in the 2nd quarter of '91. I chose to look into the Canadian Economy from 1987 to 1994. While examining the chart for Canada's real GDP off Yardeni.com I came to the conclusion that Canada's Economy is strong, it has only hit a negative percent changes twice in the past 20 years. The second negative percent change occurred in the early 90's and that is what I am going to figure out by using some GDP Expenditure Component charts, a retail sales chart, the consumer price index chart, and lastly the interest rates chart. Consumer spending was on the fall, government spending was up and down, real capital spend
Since that time Canada's economy has risen back up to adequate standards. We can all learn from this brief time period that Canada has had to face, the economy fluctuates from time to time do to the dynamic movements of the business cycle. With every positive time in any economy there are always going to be dire times as well. If our government can't control our economy through its spending, as the Canadian government proved, then we will just have to accept the truth of the invisible hand, and live through recessions every once in a while to appreciate each and every expansion when they are present. The lack of consumer confidence greatly affected the downfall of the Canadian GDP during the late 80's and early 90's. Retail sales dropped an exceptional 20% from '87 to '91 showing the incontestable correlation between consumer confidence and the GDP. The consumer price index dropped nearly 6% from 1990 to 1994 just as the GDP rose 9% during the same time period. The interest rates did not seem to stagger dramatically from '87 to '94, but as in any other situation a minor change in the interest rates will play a major roll in consumer expenditure, whether money will be spent on durable or non-durable goods. The lower the interest rates are, th
Some common words found in the essay are:
Canadian GDP, Expenditure Component, Obviously GDP, , Canada's Economy, Canadian Economy, people money, government spending, people money banks, GDP Yardenicom, consumer spending, money banks, canada's economy, consumer confidence, consumer price index, retail sales, chart consumer, rates people, negative percent, money banks save, rates people money,
Approximate Word count = 851
Approximate Pages = 3 (250 words per page double spaced)
|
