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•
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Italy
r
./
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SWitzerland.
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New Zealand
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4,000
6,000
8,000
10,000
12,000
14,000
16.000
Per ca.pita GDP, 1960
FIGURE 5.8 Growth Rates in the OECDt 1960-2000
Macroeconomics, Charles I.Jones
Copyright © 2008 W" W. Norton & Company
Growth rate, 1960-2000
0.06
South Korea.
Thailand.
Japan
China.
b d
Malaysia Bar a os •
•
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16,000
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FIGU
5.9 Growth
Rates around the World, 1960-2000
Macroeconomic
I
Charles I.jones
Copyright © 2008 W. W. Norton & Company
Canada; Unemployment
rate;
Botl1 sexes; 15 years and over
[v2091177]
15
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[\1114421]
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Canada; Canada's net international investment position; All countries
[v235422]
U.S./Canadian Exchange Rate: U.S $ per Can $
1.05
1.00
0.95
0.90
0.85
0.80
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0.65
http://www.economagic.com/Aug
292008
o · 60 19 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20
72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08
TIle
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During the 1960s, Canadian
rates of inflation seemed to lie
along a Phillips curve. Inflation
rose and unemployment
fell
fairly steadily
during this
decade, and policymakers had
apparently decided to live with
higher inflation
in order to
reduce unemployment.
Source:Adapted from the following: Unemploymentrate: Historical
Statistics of Canada, Series0233;
Inflation rate, 1960-61: Calculated
using GNP deflator, Historical
Statistics of Canada, Series K17;
1961-69: Calculated using GOP
deflator,StatisticsCanadaCANSIM
II, seriesv1997756.
QI
>:ll
...
1966
5
d
=
QI
~
~
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=
4
i
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2
The figure shows the combinations of inflation and unemployment
experienced
in
Canada each year from 1970
to 2006. Unlike the situation
during
the
1960s
(see
Figure 13.1), after 1970, the
relationship between inflation
and unemployment seemed to
change from what it had been
in the 1960s.
Source:Adapted from the following: Unemploymentrate,1970-75:
Historical
Statistics of Canada,
Series0233; 1976-2006: Statistics
Canada CANSIM II, series
v2461224;Inflationrate:Calculated
usingCOPdeflator,StatisticsCanada
CANSIM II, seriesv1997756.
-2
4
9
10
Unemployment
11
12
rate (percentage)
Sector accounts, all levels of gOI-lernment
Federal government debt
1.) What are the sources of economic growth?
2.) Why does growth fluctuate?
3.) Can economic policies enhance growth and moderate fluctuations?
4.) Why has the price, level increased over time?
5.) Why has inflation come down over the past decade?
6.) Why is there unemployment?
7.) Is Canadian unemployment
"too high"?
.
8.) What can the government do about unemployment?
9.) Why has the Canadian dollar appreciated
recently?
10.) Does a strong currency help or hurt the economy?
11.) What determines the trade balance?
12.) Are trade deficits bad for the economy?
13.) Is government debt a burden on future generations?