Canadian GDP Essay

This essay has a total of 548 words and 3 pages.

Canadian GDP

The output or GDP of Canada has increased from 1995 to 1999. This means that more people
became employed or productivity has risen. With the GDP on the rise, Canada is able to buy
more because people will have more money from work. This would appreciate the dollar
because Canadians need the U.S. dollar to purchase our goods.

Demand, on the other hand, has somewhat stayed the same. There were periods when it was up
and periods when it was down. When the demand for passenger cars was falling, Canadians
were looking elsewhere to buy their cars. This factor would, most likely appreciate the
dollar because, one again, the Canadians would need the U.S. dollar to buy our cars. When
the demand was up, the opposite situation would happen.

The unemployment rate for Canada fell, possible because of increased advertisement. When
the unemployment of a country is low, output and productivity are raising. I stated
before, as output rises, imports will also rise. This is due to the increase of money in
the country. The dollar will appreciate relative to the Canadian dollar.

Canada's inflation has risen 7% in the last five years. As the price of Canada's goods
increase, the U.S. is looking elsewhere to buy its products. The supply of the U.S. dollar
would decrease in Canada and the U.S. dollar would appreciate. In order to get an exact
reading of the actions taken by Canada, we must look at their inflation compared to the
U.S. I looked at http://www.stls.frb.org/fred/data/cpi/cpiaucsl, and I found that the U.S.
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