Chapter 6 B.C. outperforms nation in disposable income

Link: http://www.canada.com/vancouversun/story.html?id=e818e927-5900-4c3c-8c33-7e2c296fe972&k=20144

Summary

The main idea of this article is just as it suggests in the title. “B.C. outperforms nation in disposable income”. B.C. has the biggest gains in disposable income compared to their previous two decades. Consumes are spending more in B.C. for furnishing sand appliances, and even cars were sold in “record numbers”. We also expedited the strongest expansion nine a while of 3.6 per cent, mostly due to an increase in personal consumption by 5.3 per cent. The real gross domestic product of our province is better than the national growth rate of 2.7 per cent; we are only second to the crazy oil spurting province of Alberta. Personal disposable income grew, and in turn, caused an increase in per capita after-tax income which is 15 percent higher than three years ago. Our provincial economy is only expect to go higher by 3.6 percent in GDP, the strong employment and income growth is “expected to support household consumption”., and the amount of business investment and also the 2010 Olympics are expected to further boost our construction industry. One thing that was weak was our forestry industry, which is expected to drag B.C. down, but only slightly.

Relation to Ch.6 – Determination of National Income

The chapter outlines the component of aggregate demand. It is an important factor in determining our national income. The aggregate demand itself is determined on different factors or “components” of aggregate demand. One of the factors influencing the level of consumption expenditures is disposable income, what this article was about. The growth B.C. experienced is a positive thing, since higher disposable income would in turn create a higher aggregate demand. It is believed that disposable income is the most important factor, since we spend accordingly to how much we can afford. Putting money into the economy usual increases the GDP, and a little increase in B.C. we had this theory proven. The increase in our disposable income, was also shown as a increase in our GDP levels.