Complex adjustments continue in all provinces in 2016

Few changes in 2016 | The complex adjustments to the oil price slump that provincial economies began in 2015 will continue into 2016 and are expected to result in sharply divergent provincial growth rates, as was the case last year . On the one hand, oil-producing provinces will struggle with recession, while three oil-consuming provinces will see solid growth.

Question 1:

Explain why the oil price crash has a positive impact on oil-consuming provinces.

Question 2:

Explain why the anticipation of low oil prices will lead to reductions in capital expenditures in the energy sector. Take care to clearly name the economic variable concerned.

Question 3:

Explain the impact of low interest rates on Canadian economic growth. Take care to clearly name the economic variables concerned.

Question 4:

Name two ways the Bank of Canada keeps interest rates low.

Question 5:

Explain the impact of the depreciation of the Canadian dollar on Canadian economic growth. Take care to clearly name the economic variables concerned.

Question 6:

Explain the impact of improving US demand on Canadian economic growth. Take care to clearly name the economic variables concerned.