Chapter 5
Chapter 5- The 10-year world boom
This article states that Canadian business has stated the world economy by banking, exchange rates and government regulation in the last 10 years. During these 10 years, the growth in Canada has been generally steady. The annual real growths over the last five years have insulated the United States. Over the last five years, the growth in US reaches 3.5 percents whereas Canada achieves at 1 percent. Comparing the distinction between the US and Canada, the Canadians GDP per capita has reached over for the past five years. Since the relative growth for Canada has not change, but the growing world economy is sliding. The total world GDP is 2.1 percent, Canada now accounts for 1.84 percent.
One economic strategy that spans most of the world's financial system is the focal point on keeping inflation relatively low and steady. Inflation rates in developed countries drift between 2 percent and beneath 4 percent. During these burst of inflation that might force central banks to increase interest rates to recession-causing levels, the actual inflation hazard is smaller. If the inflation rate goes from 2.5 percent to 3.5 percent, it is clearly stated that taking a massive economic contraction to set the inflation back. A country’s GDP rate would increase when the inflation rate would decrease. One thing that could speed up the rate of the decline in GDP would be to increase the jobs opportunities. The weakness in growth has not worked its way into the job numbers, which have stayed fairly low. Both the goods-producing sector and the service sector were not surprise, due to weaken in the U.S economy. The poor performance of the service sector did catch the economists off protector. The weak point was spread across wholesale and retail trade, as well as transportation and warehousing.
GDP is the measure of the value of all goods and services produced in Canada. The gross domestic product includes only final goods and services, not goods and services used to make another product. Changes in the gross domestic product are in indication of economic output. I think that Canada is clearly not participating in the world growth boom to the extent that it should. A low GDP rate is not good for the country or even people. New business owner would look at the country’s GDP before starting a business. If the overall GDP for that country were not high compared to other country, then the business owner would not invest. As a result, the economy would decline and it affects the job opportunities. The rate of employment would decreases since no one is willing to spend their money in this economy.
Link: http://www.canada.com/nationalpost/columnists/story.html?id=0f75a780-682f-40ae-ad68-7845a667b58b&p=2
This article states that Canadian business has stated the world economy by banking, exchange rates and government regulation in the last 10 years. During these 10 years, the growth in Canada has been generally steady. The annual real growths over the last five years have insulated the United States. Over the last five years, the growth in US reaches 3.5 percents whereas Canada achieves at 1 percent. Comparing the distinction between the US and Canada, the Canadians GDP per capita has reached over for the past five years. Since the relative growth for Canada has not change, but the growing world economy is sliding. The total world GDP is 2.1 percent, Canada now accounts for 1.84 percent.
One economic strategy that spans most of the world's financial system is the focal point on keeping inflation relatively low and steady. Inflation rates in developed countries drift between 2 percent and beneath 4 percent. During these burst of inflation that might force central banks to increase interest rates to recession-causing levels, the actual inflation hazard is smaller. If the inflation rate goes from 2.5 percent to 3.5 percent, it is clearly stated that taking a massive economic contraction to set the inflation back. A country’s GDP rate would increase when the inflation rate would decrease. One thing that could speed up the rate of the decline in GDP would be to increase the jobs opportunities. The weakness in growth has not worked its way into the job numbers, which have stayed fairly low. Both the goods-producing sector and the service sector were not surprise, due to weaken in the U.S economy. The poor performance of the service sector did catch the economists off protector. The weak point was spread across wholesale and retail trade, as well as transportation and warehousing.
GDP is the measure of the value of all goods and services produced in Canada. The gross domestic product includes only final goods and services, not goods and services used to make another product. Changes in the gross domestic product are in indication of economic output. I think that Canada is clearly not participating in the world growth boom to the extent that it should. A low GDP rate is not good for the country or even people. New business owner would look at the country’s GDP before starting a business. If the overall GDP for that country were not high compared to other country, then the business owner would not invest. As a result, the economy would decline and it affects the job opportunities. The rate of employment would decreases since no one is willing to spend their money in this economy.
Link: http://www.canada.com/nationalpost/columnists/story.html?id=0f75a780-682f-40ae-ad68-7845a667b58b&p=2
posted by sammi at 12:21 AM
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