2.5 Working with macroeconomics data: Canadian GDP data

Gross Domestic Product (GDP) is often used as a benchmark for comparing livelihoods and production across regions and/or time. This lab will familiarize you with Canada’s GDP data and explore these questions:

• How does Canada measure GDP?
• What is captured in these statistics?
• What is not captured?

Step 1: Download the data

1. Go to StatCan Table 36-10-0104-01.
2. Click Add/Remove data and make the following adjustments:
3. In the Prices tab, select Chained (2017) dollars and Current prices.
4. In the Estimates tab, click Clear all to unselect all levels, then select Gross Domestic Product at market prices. This is the GDP measure.
5. In the Reference period tab, select the preferred time period.
6. Click Download options, then choose CSV.

Step 2: Identify the variables

1. Go to Overview of the National Income and Expenditure Accounts and read the last paragraph on page 1, starting “Real GDP is a measure….”
2. Identify the variables:
   1. Which data series downloaded in Step 1 (Chained [2017] dollars and Current prices) is used as a measure for real GDP?
   2. Which is used as a measure for nominal GDP?

Note: You are not required to know how exactly the price index is calculated. However, if you’re interested, you can do your own research based on the information in the paragraph.

Step 3: Generate the graph

1. Check the general instructions to understand what you should include in your graph. The graph below is an example.

Figure 2.1

Quarterly Canadian Gross Domestic Product (GDP) 2012–2022

Step 4: Calculate the GDP deflator

1. Calculate the GDP deflator and its growth rate.
2. Looking at your graph, can you infer the change in the price level based on the graph?

Step 5: Calculate the growth rate of the real GDP

1. Calculate the growth rate of the real GDP.
2. Looking at your graph, can you identify any period in which the Canadian economy was in a recession?
3. Identify the period (and the peak and the trough) in your graph.