BUSI 3410U Lecture 7: Measuring Economic Activity
Document Summary
Gross national product- don"t look at the border, look at the people. Gross domestic product what is being produced in canada. Expenditure approach: what is spent on final goods and services. Income approach: what is earned from producing the final goods and service. If you decided to buy a car from another country. That is when a canadian buys an import. If we have a trade deficit it"s negative. If you manufacture a car in canada and it is bought from someone in another country. If roots sets up a distribution centre inn bc, it doesn"t affect the capital account because the money stays in canada. You know you have recovered when you"ve reached your previous point: expansion- new ground, beyond recovery, peak- economically, it"s only downhill from here. After you hit the peak, gdp declines: contraction (recession) -2 consecutive quarters of negative growth. Timing and behaviour are issues in the business cycle.
