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The report also comments on the Government of China’s policy actions that are aimed at boosting the growth rate of the country’s economy (BBC, 2013). China's economy is the second-largest economy in the world. Currently, the country’s GDP has been estimated to be $12.38 trillion (according to the 2012 estimate) (CIA, 2013). However, recently the growth rate of the economy has slowed down significantly. After noting the declining performance level of the economy for the past few months, government has adopted certain policy prescriptions to improve the health of the economy. This paper discusses the main causes that lead to this issue and the level and pattern of impact that the problem casts on Chinese economy and society. The aggregate demand as well as the supply of goods and services in the economy is affected by this change in growth rate. The government is following expansionary monetary policy to improve investment climate in the economy and has increased level of public spending in order to increase domestic demand in the economy. Discussion on the economic problem issue China has depicted “soft growth momentum in the first quarter” (BBC, 2013) of 2013. ...
Causes of the problem The article on BBC highlights two major concerns over the declining growth rate of the Chinese economy. Firstly, the economy has been heavily dependent on the export of various commodities and the major exports markets for the country are the USA and the European countries. The major items exported by the country are transport equipments, garments, accessories, toys, plastic products, machinery, rubber, textile, metallurgical products, Chemical products, fuel materials such as crude oil and refined oil, and food items (Peopledaily, 2001). China follows an export led growth and it has remained the largest contributor to the output of the global economy and accounts for nearly 3 percent of the global output. Although according to the International Monetary Fund, Chinese contribution to the global output is set to exceed that of USA, Germany and Japan; some economists have claimed in the past that the country would not be able to sustain its growth rate on the basis of exports for a long time. After the financial crisis of 2009 that had hit the USA and the European countries hard, economic growth in these countries slowed down. These countries faced serious financial crunch and their import demand decreased. Therefore, the Chinese economy experienced a loss of in export market. This had a major impact on the economy and its performance. Since the exports in the Chinese economy weakened, different sectors in the economy slowed down their production rates and the total output in the economy decreased that is reflected in the country’s gross domestic product. The constant sluggishness of economic performance in these advanced countries,
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The effectiveness of the two policies is derived from the way the combination of both policies affects the aggregate demand in the economy (APE). The monetary policies affects the supply function (ASF), thereby shifting the supply curve towards the right or left.
The demand side of the market comprises of the owner and the renter while the supply side comprises of the developer as well as the renovator. In order to analyze the demand and the supply factors a number of modifications need to be implemented in the microeconomic assumptions.
One of the significant areas of economics especially is macroeconomics which is a branch of economics that deals with the problems of a particular country or economic region comprised of several economic agents acting with their individual economic behaviors and the evaluation of the policies taken by the government of these countries in order to tackle those problems (Adams, 2002, p.
vaccinations against infectious diseases). Briefly suggest how government might intervene to correct this under-provision? 5 (C) The Consumer Price Index (CPI) is the official measure of inflation in the United Kingdom. Why might CPI not be an accurate measure of the costs of living for any given individual consumer?
Macro & Micro economics Introduction China is one of the fastest growing economies in the world. Being the second-largest economy, China has shown tremendous growth in the last three decades. According to the estimate of 2012, China’s GDP is US $12.38 trillion (CIA, 2013).
Macro & Micro economics Introduction The Chinese economy has been growing at a significantly high rate since the last three decades. It is the second-largest economy in the world and is one among the fastest growing economies (Chiang and Standing, 2013). Last year (2012), in the fourth quarter, the Chinese economy grew at the rate of 7.9% (BBC, 2013).
Name: Student Number: Short Essay: Macro & Micro Economics 1. Write a paragraph explaining why a “technology-based” water pollution-control standard might not be the most economically efficient (or cost-effective) way to achieve a given level of reduction in water pollution.
Macro & Micro economics Name of the Student Name of the Professor Course Number Date Macro & Micro economics Doll Production Process There are varieties of dolls that are produced in the modern consumer goods market. Though there are certain machines that help to shape up dolls, the production of dolls is majorly a labor intensive method production that requires more of laborers than capital machinery equipments.
Macro & Micro economics Contents Contents 2 Introduction 3 Causes and Mechanisms of the collapse of the world trade 3 Current Trade Policies in Response to the Global Recessions 7 Policy responses on negative impact on the trade balance were implemented in the UK 8 Effectiveness of the EU trade policies in the long run 9 Conclusion 11 References 12 Introduction The Great Depression was one of the most severe economic downturn that the world faced during the twentieth century in the pre-World War era.
Spillover effect is referred to the decrease in the wages of the non-union company. Generally after any organization increase wages then simultaneous they used to reduce the number of employees to maintain the balance in the profitability.
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