Chapter 8: Measures of Economic Activity

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Expectations Regarding The Pr<strong>of</strong>itability Of Investment Projects • How high sales & production are relative to production capacity & whether sales are expected to increase in the future • If production is at capacity and sales are expected to rise then investment will increase • If sales are expected to fall investment will be low • If economic forecasts predict the economy will do well then investment will increase • Poor economic outlook will result in low investment
Interest Rates • When interest rates are lower, investment by businesses is higher • When interest rates are higher, investment by businesses is lower • Why? Interest rates are the cost <strong>of</strong> borrowing money!
Page 1 and 2: An Introduction to Macroeconomics D
Page 3 and 4: Recovery The Business Cycle The Bus
Page 5 and 6: Economic Prosperity: The Demand Sid
Page 7 and 8: A: What Determines Consumption (C)?
Page 9 and 10: Consumer Confidence • The degree
Page 11 and 12: Consumer Indebtness • A strong fa
Page 13 and 14: How much do Canadians save? • Per
Page 15 and 16: Investment Spending By Businesses (
Page 17: What Determines the Level of Busine
Page 21 and 22: GOVERNMENT SPENDING ON GOODS & SERV
Page 23: Questions & Homework

Chapter 8: Measures of Economic Activity

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