Explain How and Why Canadians Might Change Their Consumption in Response

question 20

Essay

Explain how and why Canadians might change their consumption in response to an increase in wealth arising from a rise in stock prices and an increase in housing prices.

Analyze the macroeconomic theory related to the impacts of wealth, interest rates, and government spending on the economy.

Understand the historical context of macroeconomic policies and their evolution over time, particularly during significant economic downturns like the Great Depression.

Interpret macroeconomic data, including GDP, and understand its implications for economic policy and performance.

Recognize the impact of international factors, such as exchange rates and foreign price levels, on the domestic economy.