Chapter Preview
This chapter will provide you with a comprehensive overview of key economic principles and the role of banking in the global economy.
Learning Objectives
After reading this chapter, you should be able to do the following:
- Describe how different economic systems control the factors of production through input and output markets.
- Describe the different types of global economic systems.
- Identify the various degrees of competition in the Canadian economic system.
- Describe the law of supply and demand and how the equilibrium price is determined.
- Describe what occurs at each of the four stages of the business cycle.
- Analyze several leading economic indicators to forecast future economic trends.
- Summarize how the government uses both monetary and fiscal policies to stabilize the economy as a result of business cycle fluctuations.
- Explain the role of money as a medium of exchange, the finiteness of the supply of money, and the role of the Bank of Canada in managing the supply of money.
- Explain how the World Bank and the International Monetary Fund assist with international trade.
