Discuss About The Reevaluating History China Economic Boom?
The situation here is consistent with the law of supply and demand. Increase in the supply of bananas in the market will result to a decrease in the demand for bananas since consumers will have more to purchase at their disposal. As a result, demand will fall as evidenced by the shift in the demand curves above downward to the left i.e AD0-AD1.An increase in the supply of bananas will not only result to a fall in the demand but will also result to a fall in prices for the bananas form Pe to Pe’. Overly, the changes above will ultimately result to the shift on the equilibrium level from E0 to E1.
Increase in people’s income would result to improvement in the people’s purchasing power in the market thereby resulting to creation of excess demand for the bananas in the market consequently leading to the shift in the demand curves towards the left. The supply side of the market would also respond to the newly created excess demand by marketing more supplies. This would be depicted by the shift in the supply curves towards the right. With the increase in real income among the consumers, creation of excess demand will push down the prices in the market after some time. Equilibrium price level will also fall owing to the shift in the supply curve. The explanation above is reflected in the illustration below.
The performance of economy can be determined based on whether recession or boom based on the main macroeconomic indicators such as inflation, Exports, Gross Domestic Output and unemployment. Recession refers to the economic phase where a country’s economy experiences low levels of GDP, low business confidence, high inflation rates, high rates of unemployment, low levels of exports against imports(Christiano, Eichenbaum and Trabandt, 2015).On the other hand, boom phase of an economy is characterized by high growth in the levels of GDP, high levels of business confidence, low inflation levels within the healthy levels, high rate of employment, and high levels of exports against imports (Brandt and Rawski, 2014).
Just from the basic explanation of economic recession and economic boom above, the conclusion about economic performance of china for the year 2016 can be concluded on the basis of inflation, business confidence and export levels for that year. Right from the illustration of inflation rate over this period, it can be observed that inflation rate remained at productive levels over the period (Orphanides, 2003).Healthy inflation results to the creation of business confidence thereby creating an assurance for optimal returns by investors, achieved through adoption of business expansion plans.
Similarly, it can be observed that based on the trend of the unemployment curve, unemployment remained at low levels and further declined later on. This is a sufficient proof that Chinas economy had experienced boom. Nevertheless, the level of exports remained high too over the period. Based on the trend of export curves, it can be observed that exports sharply increased throughout the year. Despite the fact that there was a drop in business confidence as evidenced by the business confidence curve above, it grew sharply throughout 2006.
Aggregate demand refers to the total demand for goods and services in the economy. Aggregate demand is a function of employment, inflation rate and the level of exports. Unemployment rates remained high between 2005 and 2006.Inflation also fell sharply over this period. Overly, Chinas exports kept on increasing over this period. Low business confidence is never healthy for an economy. Low or lack of business confidence not only lowers a country’s GDP but also hinders growth in employment.
The performance of an economy is fundamentally determined by the level of GDP, inflation, the rate of unemployment, balance of trade, and the level of government against Gross Domestic Product. Based on Chinas macroeconomic indicators for the year 2017 above, it can be observed that the economy is at boom. This is evidenced by considerably by a significant fall in unemployment rate (0.5%) management to the previous period, a significant improvement in the level of balance of trade (10.06%) and considerably low ratio of government debt to Gross Domestic Product.
Brandt, L., Ma, D., & Rawski, T. G. (2014). From divergence to convergence: reevaluating the history behind China's economic boom. Journal of Economic Literature, 52(1), 45-123
Christiano, L. J., Eichenbaum, M. S., & Trabandt, M. (2015). Understanding the great recession. American Economic Journal: Macroeconomics, 7(1), 110-167.
Orphanides, A. (2003). The quest for prosperity without inflation. Journal of monetary Economics, 50(3), 633-663.
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2019). Reevaluating History China Economic Boom. Retrieved from https://myassignmenthelp.com/free-samples/reevaluating-history-china-economic-boom.
"Reevaluating History China Economic Boom." My Assignment Help, 2019, https://myassignmenthelp.com/free-samples/reevaluating-history-china-economic-boom.
My Assignment Help (2019) Reevaluating History China Economic Boom [Online]. Available from: https://myassignmenthelp.com/free-samples/reevaluating-history-china-economic-boom
[Accessed 22 January 2021].
My Assignment Help. 'Reevaluating History China Economic Boom' (My Assignment Help, 2019) <https://myassignmenthelp.com/free-samples/reevaluating-history-china-economic-boom> accessed 22 January 2021.
My Assignment Help. Reevaluating History China Economic Boom [Internet]. My Assignment Help. 2019 [cited 22 January 2021]. Available from: https://myassignmenthelp.com/free-samples/reevaluating-history-china-economic-boom.
Getting nightmare regarding pending chemistry assignment? Then it is high time you consider hiring chemistry assignment help service of MyAssigemnthelp.com. We at MyAssignmenthelp.com deliver quality subject specific assistance on more than 100+ subjects. For us, students' need is foremost, and we work round the clock to offer science, humanities and commerce assignment help. Among Commerce wing, our one of the most popular services is capital budgeting assignment help. In science segment, we have gained popularity with biology assignment help.
Answer 1. (a) Definition One of the key features of perfectly competitive firms is that they are price takers and not price makers. This happens due to primarily two reasons. One of these is because of the small size of all the producers due to which no firm has the ability to influence the industry by the underlying economic decisions it makes. This prevents any particular firm from bringing changes in the price. The second reason is that th...
Read MoreAnswer: Introduction The current performance of Gross Domestic Product, inflation rate and unemployment rate in Saudi Arabia is performing well currently (Samargandi, 2014). The government policy of Saudi Arabia is focusing on economic development which will be able to increase economic growth. This task will describe and analyse how the inflation rate, unemployment rate and GDP are performing a case study of Saudi Arabia economy. Gross Dome...
Read MoreAnswer: Chapter 1: Macroeconomics, GDP and Economic Growth Article Title: “Amid massive Trump-induced chaos, GDP growth continues. Why?”(Dallasnews.com 2018) Article Source: https://www.dallasnews.com/opinion/commentary/2018/07/19/amid-massive-trump-induced-chaos-gdp-growth-continues Article Summary According to the article, on one hand, the country can be seen to be struggling with a possible trade war, fall...
Read MoreAnswer: Introduction: Toyota Motor Corporations is a Japanese company that belongs to an automobile industry. The company has achieved a global leadership in the car manufacturing industry through its consistent performance. The company has successfully adopted the generic and intensive strategies towards its growth and development. The major reason behind the leading performance of the company is its monopolistic operations system since it ...
Read MoreAnswer: Introduction The cheddar cheese of the United Kingdom is one of the world’s well known and loved cheese whose roots are in the English West Country. The cheese can only be called Cheddar if it is being made using milk from herd in the countries of Dorset, Devon, Somerset and Cornwall and should also not contain any kind of colouring or flavouring and preservatives. Cheddaring of cheese is a process of stacking the cut curd to fo...
Read MoreJust share requirement and get customized Solution.
Orders
Overall Rating
Experts
Our writers make sure that all orders are submitted, prior to the deadline.
Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.
Feel free to contact our assignment writing services any time via phone, email or live chat. If you are unable to calculate word count online, ask our customer executives.
Our writers can provide you professional writing assistance on any subject at any level.
Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.
Get all your documents checked for plagiarism or duplicacy with us.
Get different kinds of essays typed in minutes with clicks.
Calculate your semester grades and cumulative GPa with our GPA Calculator.
Balance any chemical equation in minutes just by entering the formula.
Calculate the number of words and number of pages of all your academic documents.
Our Mission Client Satisfaction
I had issues with my assignment and on top of that I have other commitments that hinders me from completing my assignment, therefore I engaged myassignmenthelp 2 days shy of the due date and I am impressed with the results that I obtained. Therefore,...
Australia
Thank you for reworking this order, the outcome is much better than the first produced and i look forward continue working with you.
Australia
the assignment was up to the mark. the team have done a great job. There should be more discount for loyal customers.
Australia
was on time for my assignment due, it was clear and straight to the point, it had enough detail to know what was happening and which question was being answered
Australia