Dealing With An Economic Problem

Introduction

Throughout this unit of study, we have explored the dynamic nature of the Canadian
economy, and how the interaction of various stakeholders influences the ups and downs of
economic activity. We have also examined the expectations of the government’s role in
influencing this economic activity. In this performance task, you will investigate the current
state of the Canadian economy and then propose an appropriate stabilization policy.

Your Task

Your job is that of policy adviser in Canada’s Federal Department of Finance. Your employer
has asked you to assess the current economic trends in Canada, using the principal
economic measures. Once you have completed your assessment, you will produce a report
outlining your policy recommendations to the prime minister and the Cabinet.

Task Steps And Requirements

1. Research the 3 principal economic measures (the GDP growth rate, the
unemployment rate and the inflation rate) and their fluctuations over the past 3 years.
Some possible sources of information include the Web sites of the Department of
Finance Canada, and Statistics Canada.
2. Using the business cycle and aggregate supply and demand analysis, explain the
direction in which the economy is moving and suggest the dangers that lie ahead if it
should continue to move in that direction.
3. Identify the appropriate fiscal and/or monetary policies that should be used to deal
with the current economic climate.
4. Outline the appropriate economic tools to implement your policy recommendations,
using the economic language you learned in this unit.
5. Provide specific, appropriate, and reasonable examples of how your policy
recommendations could be achieved, addressing the impact (both positive and
negative) on all economic stakeholders- consumers, producers, investors, exporters
and importers.
6. Present your findings in a well-organized written report addressed to the minister of
finance.

Adapting The Task

You may choose to organize your findings in an audio-visual multimedia report or a

Powerpoint slide presentation, which could then be presented to Cabinet. Discuss the
selection of a format for your report with your teacher. Keep the language appropriate for the
intended audience.
Assessment Criteria

● Knowledge- appropriately and accurately using terminology related to

macroeconomics and fiscal and monetary policy.
● Thinking and Inquiry- researching relevant evidence and interpreting it effectively;
apply sound economic reasoning.
● Communication- Clearly presenting and communicating your recommendations to
the intended audience, using an appropriate tone.
● Application- Stating the appropriate conclusions regarding economic policy;
planning a clear course of action for the government.