What factors are important for achieving the goal of economic growth for Canada's economic system?

Question

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The Answer is The Business Cycle
The business cycle refers to the rise and fall of economic activity over time. Although the economy will grow over the long term, economic growth is usually unstable. Business cycles or economic fluctuations vary in length and severity. Some periods of fluctuation are difficult and long; others are short and mild. Generally, the economy in the long run has an upward slope with ups and downs of varying degrees The five stages of the business cycle are expansionary, peak, contraction, trough, and recovery).
The expansionary phase is a period when economic activity is rising. Goods are being produced and sold, the workforce is expanding (that is, jobs are being created), demand for goods is increasing, and the price of goods is rising. Typically, this is a positive period for business. Profits are rising, cash flow is steady, and there is an opportunity for some risk taking. The expansionary period can experience a sudden economic boom or slow and steady growth. The economy needs to be expanding in order for economic growth to occur. Once the economy has reached its highest point, it can be said to have peaked. A peak marks the end of the expansionary phase and the beginning of the contraction phase. A contraction phase is characterized by declining economic activity and falling profits. During this phase, managers usually reduce costs, lay off workers, and halt any plans to invest in the company. A recession is realized when there are two or more consecutive quarter periods of negative or falling economic activity. A depression is an extreme recession that is characterized by longer economic periods of declining economic activity, high unemployment, and high levels of personal and commercial bankruptcies.
Productivity
Productivity is also an important factor to achieve economic growth. Productivity measures the level of output versus the level of input in an organization. An input, for example, can include materials, labour, or overhead, whereas an output is often a finished unit of product (or service) ready to be sold. An organization is said to have improved its productivity when it can produce more outputs with the same number of inputs. Alternatively, an organization can produce the same number of outputs with a reduced number of inputs. When costs are reduced and spread over the total number of units produced, an improvement in productivity has been achieved.
Balance of trade
The balance of trade is the value of all the goods and services a country exports minus the value of all the goods and services a country imports. While most trade with Canada involves goods, services have been an important component to the economy. Ideally, Canada would like to have a trade surplus instead of a trade deficit. A trade surplus occurs when a country exports more goods than it imports. This indicates a positive balance of trade and encourages economic growth. A trade deficit exists when a country imports more goods than it exports. A trade deficit is problematic because it results in a negative balance of trade, which means more money is leaving the country than is entering the country.
Exchange rates
One factor that can affect the cost of trade is exchange rates. In today's competitive marketplace, more firms are doing business outside of their home country-that is, buying and selling goods in different markets and currencies. When transactions begin in one
currency and settle in another, businesses must deal with exchange rates. An exchange rate or currency rate is the value of a foreign currency compared to a home currency or, in other words, the amount of domestic currency that must be given up to obtain an equivalent unit of the foreign currency. Global companies deal with exchange rates every day because their transactions occur between multiple countries. The most common type of currency transaction for businesses is the purchase and sale of goods and services across borders. A second type of transaction involving multiple currencies is the purchase and sale of investments. A third example of a currency transaction is through financial statement translation.
National debt
A low national debt means the government will not have to spend a lot of tax revenues on interest and can spend money appropriately on important services. Debt is borrowed money that must be repaid, usually with interest. Unlike consumer debt, which is debt individuals have accumulated from the purchase of goods and services, national debt, also known as federal debt , is debt accumulated by the government. All local, regional, or national governments can have debt, but a large national debt can be especially problematic for individuals and businesses because this debt can affect the economy as a whole.

What Factors Are Important for Achieving the Goal of Economic