Canadian Economy Shrinks in May Real GDP grew 1 percent in 2013. Business investment increased 3.2 percent, exports grew 1.6 percent, and imports rose by 2.2 percent. Source: Statistics Canada, The...

Canadian Economy Shrinks in May

Real GDP grew 1 percent in 2013. Business

investment increased 3.2 percent, exports grew

1.6 percent, and imports rose by 2.2 percent.

Source: Statistics Canada, The Daily , July 29, 2013

Use the flows in the figure in Problem 2 to identify each flow in the news clip. How can GDP

have grown by only 1 percent with investment

and exports growing by more than 1 percent?