The graph above can be used to compare the percent change in Gross Domestic Product in the United States and Canada. The United States is represented by the red line and Canada is represented by the blue line.
The percentage change in GDP for the United States and Canada shows that the nations’ GDP’s are generally correlated as the business cycles show the same shape for peaks and troughs. All major changes in the Gross Domestic Product in the United States are mirrored by that of Canada as they share a similar market structure. The United States tends to have a larger percent change of GDP. For example, during the Great Recession in 2009, the United States GDP troughs at -2.04% while Canada troughs at -2.77%. This time marks the first occurance when both of the countries have a negative percent changes and the closest the countries come to having the same percent change of GDP between 1961 and 2011.
It is also important to note the other major troughs during this time period occuring in 1982 and 1991. Unlike the 2009 trough, only the Canadian percent change reaches a negative number during this year.
The graph above can be used to compare the percent change in Real Gross Domestic Product in the United States and Canada. The United States is represented by the red line and Canada is represented by blue line.
The real GDP of the United States and Canada generally follow the same trends, but the peaks and trough are not correlated as closely in comparison to GDP. For example, both countries experience an extreme decline in 1982, 1991, and 2009, as is shown by the GDP and real GDP graphs. However, there are smaller influxes in the real GDP that are not reflected in both countries. There is a decrease in real GDP of the United States from 1992 to 1993, while there is an increase in real GDP for Canadian during this period of time.
It is important to note that there are intersections of the countries’ real GDP’s, while there are none for the GDP’s of the countries because Real GDP is calculated as if prices remain constant.
The Canadian economy seems to be more volatile, with the greater percentage changes in Real GDP in comparison to the US. Because the United States has a larger economy, the graph does not depict such exaggerated business cycles; however, the GDP in Canada does seem to move in parallel to GDP in the United States. Individual choices have less of an impact on overall economic status in the US because each consumer is a smaller fraction of the population proportion in comparison to the Canadian GDP. For example, when the Canadian GDP noticeably dipped in 1982, the United States GDP continued on with consistent exponential growth. Generally, Canadian Real GDP has higher peaks and lower troughs than US Real GDP. At a relative peak in 1962, US Real GDP is +6.11% and the Canadian Real GDP is +6.99%. At a relative trough in 1991, US Real GDP is -.07% and Canadian Real GDP is -2.09% There are some exceptions, like in 1984 when the US Real GDP is +7.25% and the Canadian Real GDP is +5.81%.