Macroeconomics Essay

1487 words - 6 pages

ECO202 – Macroeconomics

Case 2

Real Gross Domestic Product (Real GDP) for Canada, Japan United Kingdom (UK) and the United States (US) from 2007 continuing thru first quarter 2010, shows Japan as the only country to head upward. Following a downward movement first quarter 2008 by -0.25 %, hitting bottom second quarter 2009 before making a comeback ending the first quarter 2010 at a positive 4.22% from the previous year. Canada started the second quarter 2007 at 2.19%, staying on the positive side before falling with the other countries in the fourth quarter 2008, hitting there bottom during the during the middle 2009, ending the first quarter 2010 at 2.21% which is still ...view middle of the document...

Canada % change from previous year for 2007 was about 1.2 followed by the downward fall of all countries in 2008, reaching there lowest at approximately -1.1 before ending above 1 percent for first quarter 2010. The U.S. started 2007 below the previous year before starting to climb back up again, according to the chart the U.S. continues to climb through the first part of 2010. The United Kingdom started out stable then dropped below -1.2 % in 2009 and is continuing toward the plus side of the chart. All four countries showed a decline from the first of 2008 with an increase of production after the start of 2009. In 2010 all countries have forecasted an increase in production as the economy hopefully moves out of the recession (International Economic Trends).
The consumer price index for the U.S. for 2007- 207.34, 2008 – 215.30, 2009 – 214.53. 2010 average ending in June - 217.53. Canada’s CPI for 2007 - 111.45, 2008 – 114.00, 2009 – 114.43, 2010 average ending in June – 115.8. United Kingdom’s CPI for 2007 – 104.7, 2008 – 108.48, 2009 – 110.83, 2010 average ending in June – 113.66. Japan’s CPI for 2007 -100.31, 2008 – 101.7, 2009 – 100.32, 2010 average ending in June – 99.55 (RateInflation.com). The prices in Canada and the U.K. steadily increased during the period while prices in the U.S. and Japan increased during 2007 then remained stable during 2008 and 2009. During the remainder of 2010 the prices are estimated to increase in the U.S. but likely to decrease in Japan.
The unemployment rates in the U.S. for 2007 - 4.6, 2008 - 5.0, 2009 - 7.7, and first quarter 2010 9.7. The unemployment rate in Japans figures 2007 - 4.0, 2008 - 3.90, 2009 - 4.20, and first quarter 2010 - 4.93. Canada’s unemployment rate for 2007 - 6.1, 2008 - 6.1, 2009 - 8.1, first quarter 2010 - 8.2 percent. The unemployment rates in the UK were, 2007 - 5.50, 2008 - 5.20, 2009 - 7.10, and 2010 7.9 (Reference tables International Economic Trends).
During the period 2007 and 2010 the unemployment rate increased steeply in two countries namely the United States and the United Kingdom. In the case of the United States, the unemployment rate more than doubled reflecting the full impact of the world economic weakness. In the case of Japan its unemployment rate was 4.0 in 2007 it slightly declined in 2008, and then increased to 4.90% 2010. On the other hand the unemployment rates in Canada were 6.1% in 2007 and 2008 and increased to 8.1 in 2009 and 2010.
Canada has an economic soundness, and its strong banking system has received a lot of attention. Canada came out of the recession of 2008 – 2009 better than many of its G7 partners. Canada boasts an exceptionally strong financial system, ranked as best in the world by the World Economic Forum. Solid employment and housing trends in Canada show severe contrast to the lifeless statistics out of the U.S. In June, 93,000 jobs were created in Canada, bringing the unemployment rate down. Nearly...

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