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China's business cycle and government policy in economy development - Research Paper Example

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Microeconomics is the process by which the decisions regarding the resource allocation and product price are made by the people or businesses in a give setup. It involves the taxes and regulations put in place by the government. Microeconomics concentrates on demand and supply…
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Chinas business cycle and government policy in economy development
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China's business cycle and government policy in economy development

Download file to see previous pages... There are many economic indicators that can be used to show the growth of a given economy. In this research paper, only three are discussed. Gross Domestic product(GDP), inflation and the unemployment rate are the major indicators of the economic change in the country. Gross Domestic Product of china
The state council of China established a system of national accounting in 1985 to measure the gross domestic product of the people’s republic of China. In comparison, the Gross Domestic Product report produced by Fengbo Zhang in his measurements in 1980 and that of 1998, the difference in the economic levels is negligible. This is the period when the weighting factors underwent tremendous changes. The prices were amended year after another. Despite the great changes in technology in china, the Gross Domestic Product has shown negligible deviation since 1980. The chart below shows the changes in the Chinas GDP as compared to other economic growths in the first and second world countries.
Proportion of world (countries with data) nominal GDP for the countries with the top 10 highest nominal GDP in 2010, from 1980 to 2010 with IMF projections until 2016. Grey lines show actual US dollar values
China’s mean annual growth in Gross Domestic Growth was 9.90 % from 1980 to 2010. The highest it ever went in the history is 15% while the lowest was 3.7%. in 1984 and 1990 respectively. According to the research of 2013, Chinas nominal GDP by Expenditure approach is 9.2 trillion Dollars of the USA.
Factors affecting the GDP in china and other developed countries vary. The first is growth phase and sector shares. Economic development in China and other developed countries have experienced changes, which affected the progress of growth through labor force, participation rate and economic sector relative sizes. Transition from agricultural activities to manufacturing saw the manufacturing industries ...Download file to see next pagesRead More
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