Economics

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pqatey01

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Please discuss the current state of the macroeconomy in Canada. In particular please discuss the growth rates and gross domestic product, the unemployment rate and lastly inflation. Please discuss how these variables compare to both the short and long run averages. In providing answers, please provide where data was obtained. You can use the internet or more authorative sources such as the Bank of Canada, Statistical Canada (Cansim) dataset or the IMF/World Bank websites. After you have ascertained this information, please make a determination as to whether the economy is at its long run equilibrium level (full employment), or whether it is in a recessionary or expansionary gap. (Hint: the economy is rarely at its long run level).

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Explanation & Answer

Attached.

Running head: MACROECONOIC TRENDS IN CANADA

Macroeconomic Trends in Canada

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MACROECONOMIC TRENDS IN CANADA

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The purpose of the present paper is to discuss the current state of the macroeconomy in
Canada. More specifically, recent trends in the gross domestic product, growth, unemployment,
and inflation rates are reviews and compared to short and long-run average. It is argued that the
current economy is potentially in a recessionary gap.
The Canadian macroeconomic outlooks show a confusion situation that makes it difficult
to determine the direction of the economy. On one hand, job creation has improved in 2017 and
has produced the best records since the Great Recession of 2008. That being said, an important
uncertainty in the Canadian economy comes from the manufacturing sectors. More specifically,
the output levels are down and there is an important deficit with global trading partners. Without
a doubt, the country is suffering an important exports deficit, especially in some areas such as the
auto industry (Lange, 2017).
Despite these uncertainties, GDP, GDP growth, unemployment rates, and inflation
remain strong indicators that can be used to det...


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