Canadas Economy In 1996 :: essays research papers

Canadas Economy in 1996To investigate the state of the Canadian economy, it is very useful totrack Canadas six major stintingal goals economic offshoot, economic stability,economic efficiency, economic equity, viable balance of payments, and lowunemployment. At a given time, Canada is achieving some of these goals whilefalling behind on some of the others. When taken all into consideration, thesegoals give an indication of how well Canada has been doing and the play of thebusiness cycle the Canadian economy is in. In 1996-1997, Canada is in keen time out and is only meeting the goals of economic stability, and viablebalance of payments.Canada foot be said to be in a detail of unconvincing recession because there isa downswing in economic activity. To endure a true recovery, "an economy mustshow no increment for two consecutive draws." However, Canada is not in a truerecession because there was a 3.0% growth in the third behind, compared to2.2% in the split second quarter. Eventhough it is not true recession, the heavygrowth is a sure bespeak of a slight one. Low inflation is also is also ordinaryand is symptomatic of a weak economy. A low inflation assess of 1.4% in November1996 does not provide much of an indication for economic growth and expansion.A shrinking positive balance of payments indicates these are tough economictimes. A fourth indication of a slight recession is the high school unemployment rate.An unemployment rate of 10.0% in November 1996 is definitely not a sign of soused economic recovery.Canada is always trying to work towards the goal of economic growth. sparing growth is the percentage change of gross domestic product over a period of time and isalso known as the growth rate. In 1996, Canadas GDP has been increasing slowlysince the first quarter. The GDP in the first quarter was 1.8%, then increasedto 2.2% in the second quarter, and in the third quarter it rose to 3.0%. Inthis way, Canada has been experiencing stea dy growth. This goal is being metbecause of the increase in consumer spending inspite of the government cutbacks.Consumer spending levels tell producers what to produce, and how much to produce.If consumer spending increases, it gives a signal to the producers to producemore which causes the increasing GDP. The government cutbacks post doescontribute to lower consumer confidence and, thus, slows the economic growth.Slow, growth causes few jobs to be created as it means a slower rate ofexpansion of industries. When there is slow growth, few jobs are being created,