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Supply-Side Policies

In this article from Bloomberg, we see that Canada offering tax breaks to businesses.  This is good for Canada because it is a solution to keep up with the U.S. tax reform. From having tax breaks they are able to not cut into Canada’s deficit. So far the outcomes of this dissection has worked, Canada has kept up with the U.S. tax reform (JW). Canada has a lot of oil and natural gases and to keep firms there the government is giving them subsidies. They have given about $3.3 billion for oil and gas producers (currency in Canadian dollars). This is good and bad depending where you are looking from, keeping the oil firms there will increases the economy but also giving them subsidies mean that they aren't paying for other things that the government needs to help to people (UC). The government in Canada has decided to cut taxes for their middle class citizens. It was at 22% but now it is at 20.5%. Their reason for doing this is because they trust the middle class will inv...
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Components of AD

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GDP: Consumer Confidence: Consumer Spending: Business Confidence: Government Spending: Balance of Trade:
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Canada's GDP

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GDP exports is 31.8 % a of 2018 General government spending as of 2017 in GDP was 22% Net investment in non-financial assets as of 2017 is 47% of GDP Tax revenue as of 2017 is 32% of GDP The long-term interest rates are 19% in 2019, the short-term interest rates are 20% in 2019. Imports as of 2018 is 31% of GDP The GDP has been increasing overall for a long time in Canada and in the past 20 years there has been only 2 hiccups. What this is telling us about the GDP and the money flow of Canada is more people are acquiring more money and are able to spend more as an effect of it.
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