Canadas Economy In 1996 :: essays research papers

Canadas Economy in 1996To investigate the state of the Canadian scrimping, it is very useful totrack Canadas hexad major economic aspirations economic emersion, economic stability,economic efficiency, economic equity, viable isotropy of payments, and lowunemployment. At a foxn time, Canada is achieving some of these goals mendfalling behind on some of the others. When taken all into consideration, thesegoals give an indication of how well Canada has been doing and the stage of thebusiness cycle the Canadian economy is in. In 1996-1997, Canada is in slightrecession and is only meeting the goals of economic stability, and viablebalance of payments.Canada can be said to be in a period of slight recession because there isa downturn in economic activity. To confirm a true recovery, "an economy must(prenominal)show no egress for two consecutive quarters." However, Canada is non in a truerecession because there was a 3.0% growth in the third quarter, compared to2.2% in the assist quarter. Eventhough it is not true recession, the slowgrowth is a sure sign of a slight one. Low pretension is also is also prevalentand is symptomatic of a weak economy. A low inflation calculate of 1.4% in November1996 does not provide oftentimes 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 unemployment rate.An unemployment rate of 10.0% in November 1996 is definitely not a sign ofstrong economic recovery.Canada is always trying to twist towards the goal of economic growth.Economic growth is the percentage change of gross domestic product over a period of time and isalso known as the growth rate. In 1996, Canadas gross domestic product has been increase 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 steady growth. This goal is being metbecause of the increase in consumer spending inspite of the government cutbacks.Consumer spending levels ordinate 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 contribute 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,