RSM230H1 Chapter 4: Chapter 4
8 Mar 2017
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Document Summary
Gdp can be measured in 2 ways: income approach and the expenditure approach. Gnp is the value of all goods and services produced by canadians at home or abroad. Gnp = gdp + income from canadian investments abroad - income paid to foreign holders of. Canadian investments increase in population increases in capital stock technological innovation. Real gdp = gdp in current prices -> growth of real gdp result from: Expansion -> peak -> recession -> trough -> recovery. Expansion: stable in ation, rises in pro ts, increase demand and investment, strong stock market, job creation. Peak: increasing in ation, increase interest rates, falling sales and investments, declining stock market activity. Statscan: decline has signi cant magnitude last longer than 2 months and spread throughout entire economy. Through: falling demand and excess capacity -> drops in prices and wages, falling in ation -> falling interest rates.
