Canadian Economy Essay Example | Topics and Well Written Essays - 2750 words

Canadian Economy - Essay Example   The main   economic indicators of the   health of any economy comprise in either the absolute figure of the Gross National Product(GNP) or the Gross National Expenditure(GNE) of the economy ,preferably on deflated basis with a base year or the period to period growth rate in such a rate ;unemployment rate is another critical indicators of the economic development and growth as it indicates the percentage of the able bodies that are not gainfully employed; the third and last   most important indicator of the economic health of the economy is the inflation rate which indicates the rate at which a chosen set of prices are rising and thereby determines the real purchasing power of the national currency. A high degree of inflation often leads to widespread erosion of economic value and if the inflation is caused by monetary factors then the economic results can give misleading results if measured at market prices. Canadian economy has come out of period of recession and is on an expansionary phase. It has experienced this growth despite several shocks like the hit to beef exports caused by the Mad Cow disease SAARS afflictions etc. As of the 3rd quarter 2007 the total population of Canada was placed at 32,976,026 .As of October 2007 Canada had an unemployment rate of 5.8 % .As of September 2007 the overall Canadian inflation rate was measured at 2.5 % .Real GDP rose by   0.2 % as of August 2007. Gross domestic product (GDP) is the most often used economic indicator to arrive at a good measure of the value of economic activity.... tal population of Canada was placed at 32,976,026 .As of October 2007 Canada had an unemployment rate of 5.8 % .As of September 2007 the overall Canadian inflation rate was measured at 2.5 % .Real GDP rose by 0.2 % as of August 2007. Gross domestic product (GDP) is the most often used economic indicator to arrive at a good measure of the value of economic activity. In fact, the GDP is a double edged sword in the sense that it helps measure two major economic data over the reference period: the total income of the population in the economy and the total expenditure incurred on the economy's domestic output of goods and services. A major factor that makes the GDP measure these two things is the fact that whatever one person in the economy spends becomes the income of another person; because in the ultimate sense each person in the economy assumes one of the two roles i.e. either that of the buyer or that of the seller. If one is not a seller himself, more general position then he is a member of a seller organization which is an economic agent and pays the member for selling his services. Speaking from the accounting point of view, for the economy as a whole, income and expenditure must always equal one another. In the 2nd quarter of 2007 Canadian exports rose by 0.7 % ;whereas the imports rose by 1.6 % in the same period. The exchange rate of the Canadian dollar with its major trading currency the US dollar stood at 1.0254 as of October 2007.The most sensitive and indicative of all interest rates i.e. The Prime interest rate was placed at 6.25 % as of October 2007. The stock markets also witnessed a good turnover and activity and the S&P/TSX Composite Index, with base of 1975 stood at 14,625.00 as of October 2007.The most important economic indicators of the Federal