Canada's Economy In 1996

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much of an indication for economic growth and expansion.
A shrinking positive balance of payments indicates these are tough economic
times. 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 of
strong economic recovery.
Canada is always trying to work towards the goal of economic growth.
Economic growth is the percentage change of GDP over a period of time and is
also known as the growth rate. In 1996, Canada's GDP has been increasing slowly
since the first quarter. The GDP in the first quarter was 1.8%, then increased
to 2.2% in the second quarter, and in the third quarter it rose to 3.0%. In
this way, Canada has been experiencing steady growth. This goal is being met
because 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 ...

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1995, the CPI was 134.1. Over the
course of the year, the CPI has only changed 2.0%. The effects of stability is
that the purchasing power of Canadian currency remains more of less the same.
With low inflation, the value of the Canadian dollar, decreases very little.
Inflation rate can be tolerated if it provides an incentive for businesses to
expand. There, low inflation is also an incentive of economic growth. Low
inflation prompts the banks to lower interest rates which also encourages
economic growth. Since there are trade offs when deciding whether to raise or
lwer the inflation rate, governments must keep in mind that high inflation is
not healthy, but a little inflation is a ...

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