Chapter 19 Review

Chapter 19 Review - Chapter 19: A First Look at...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 19: A First Look at Macroeconomics Growth and Fluctuations The 1990-91 recession was mild but long compared to earlier recessions, much milder than the Great Depression of the 1930s. Compared to the world’s largest economies, Canada has o Similar business cycles and growth recessions (slowdowns in the economic growth rate) o Slower growth of potential GDP than United States or Japan Lower growth rates of real GDP per person relative to potential GDP lead to accumulated lost output o Over the business cycle, real GDP – potential GDP = output gap o Okun gap = negative output gap Slow growth means fewer goods and services for individuals and governments Fast economic growth also has costs – lower consumption from resources devoted to growth rather than consumption, and perhaps more rapid resource depletion and environmental pollution Jobs and Unemployment Every year in Canada, many jobs are created and destroyed. Average net effect is 220,000 new jobs, but in recession, more jobs are destroyed than created, and vice versa in expansion. Unemployment
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Chapter 19 Review - Chapter 19: A First Look at...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online