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Created with Fabric.js 1.4.5 Similarly Bank of Canada wouldimplement the tight money policy in an attempt to- interest rates - Attempt to savings - Excess reserves - Government is making it easier for businesses to expand into foreign markets - Want exports to go which will result in - for businesses and Government (business taxes) - Reduces the need to borrow Who it affects? - More jobs for - Increased demand for goods and services - Easier for to find jobs Government of Canada are among the worlds sought-after investments Allocated to research renewable energy technologies No businesses taxes implemented Over more Canadians working now than during the recession Creation of net jobs since July 2009 Provided to innovators of technologies to protect over endangered species Canada's Economic Action Plan $ 1.4B in tax relief to manufacturing sector Increased Efficiencyand Productivity $500K Canada can concluded FTA's with countries (since 2006) 9 $20M to modernize Canada's standards and provide increasedproductivity, market access and innovation $2.1M $5.5B given to Canadian Innovation Fund for research of technologies Innovation and creation of new technologies makes the production process more efficient, allowing businesses to produce- Business also have increase amount of economic resources - This causes an outward shift of the PPC and aggregate Supply curves. Increasing Small business loans to Reducing Small business taxes to 11% 5 5 Canada's Economic Goals Canada's Budget to unleash potential of natural resources $165M 610K allocated to students and expand their skills $330M to 12 multi-year programs $13M = - A shift outward of the AD curve - Businesses expand- Scarcity of workers becomes a problem - Increased prices- Nominal GDP as CPI Full Employment $44M to help new immigrants get settled and find work Environment Stewardship Unemployment+ Real GDP + Price levels (CPI)+ Consumer spending = Recovery period Viable Balance of Payments and Stable Currency $50M $16M to help clean the great lakes $735M Long-term investment in transporation Clean Canada established with countries (since 2006) 9 Provided over to date to exporters facing financial difficulties $11B Government is creating the right conditions forbusinesses to abroad suceed activity has decreased by since 2007 92% 195 1M to help Disabled Persons find and train for jobs $222M NEW over two years to the Automotive Fund to support new projects $500M Construction of crossing to improve the between Canada and the US. Windsor-Detroit Giving an additional to the Canada Accelerator and Incubator Program to help young $40M over three years to support the Earth Rangers Foundation $3M Growth in the number of firms (foreign competition, competition from small businesses )- Supply (Supply curve shirts to the right)- GDP- competition for economic resources (LLC) Jillan Qureshi over two years to the Recreational Conservation Partnerships Program $15M Tax for clean energy generators Incentives entrepreneurs flow of goods Counterfeit FTA's Innovation new new Fisheries Apprenticeship train over two years and per year to launch an enhanced Job Matching Service $11.8M $3.3M Reducing to the international and domestic flow of goods and services barriers securities most over two years to support and strengthen regional ports and make them more $33M Who it affects? - costs for - Prices for- Resources for businesse s consumer s future generations general population busines s student s Who it affects? - products for - Renenues for- tax revenue for businesse s consumer s governme nt Who it affects? - have access to variety of goods and services- have access to foreign markets - Foreign investment opportunities for- More business for the Leakages > Injections Higher productivity from businesses results in, - Real GDP - GDP per capita - scarcity (of economic resources)- Prices (due to competition With increase in environmental consciousness,and the shift towards renewable energy, the government is pushing sustainable developmentand trying to reduce the carbon footprint and the greenhouse gas emissions. - Large fines if Businesses who do not oblige to environmental guidelines (costs go up)- Environmentally friendly methods can be expensive- Limits Businesses from reaching max. potential - Businesses produce less (GDP decreases)- Equilibrium price is higher (supply curve shifts to left) If the economy continues to grow after the boom, the government will implement a contractionary fiscal policy to - The money supply- Prevent Hyper-inflation - Eliminate extreme competition for economic resources Efficient Canada finished 2014 with a deficit budget. This means- Imports + Borrowing > Exports + Lending- Government Revenue < Government Expenses Consumer s Businesse s investor s governme nt Encouraging trade result in:- Canadian businesses expanding into foreign markets- Creation more jobs domestically - Larger variety of goods - More competition = Better products Growth of individuals and businesses + Private ownership of economic resources + Competition between businesses = Capitalism Business taxes and laws + Public ownership of Crown Corporations + Support to Students, Immigrants, and Disabled Persons (Promoting equality)+ Employment Insurance+ Public banking system = Socialism - Economy is in the Inflationary gap - Working towards full employment- Unemployment is - Prive levels are Reduce poverty by aidingsome of the poorest groups Structural Remedies - Training Students- Developing skills of Disabled Persons - Educating Immigrants Relief Programs - Offer welfare - EI Insurance to support unemployed - Disability Pension - Pension Plan etc. Government INJECTING money into economy to help create more jobs (Expansionary Fiscal Policy) Scarcity is also tackled due to the fact that our scarce resources are being used efficiently.We know this because the average total costs decrease (more output). Economic Growth also translates to - More economic resources - Reduces costs for business- Maximizes Profit Government is trying to help limit negative externalities by- Conserving fisheries - Clean up Great Lakes Canada is a mixture of Socialism and Capitalism Economic Growth over four years to support the Forest Industry Transformation program to extract more lumber $90.4M With the increased competition from foreign businesses, domestic companies are forced to - Make efficient use of scarce resources - Offer high quality products - Provide more non-price advantages Both these policies will try to limit economic growth - Competition among businesses- Private ownership of LLCShow elements of Capitalist society Efficient use of resources, brings the economy closer to the PPC curve. Economy is almost operating at maximum capacity Encourage in financial servicesto grow financial sector competition Reducing burden for small and medium-sized businesses so they can compete tax Int. Trade tribunal ensure imports are of qualtiy high
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