According to the East Asia and Pacific Economic Update published by the World Bank in April 2015, the following factors have affected China's real GDP in 2015. - A) Global economic recovery supports a moderate increase in China's exports.B) China benefits from a fall in the world price of oilC) Chinese government to cut excess capacity in heavy industry through an advance in D) U.S. firms to relocate their labor-intensive manufacturing industries to low-cost countries. Explain how each of the above factors changes China’s short-run aggregate supply, long-run aggregate supply, aggregate demand, or some combination of them.

1. A) A global economic recovery increasing China's exports means higher foreign demand for Chinese…

Answered: According to the East Asia and Pacific…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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According to the East Asia and Pacific Economic Update published by the World Bank in April 2015, the following factors have affected China's real GDP in 2015. -

A) Global economic recovery supports a moderate increase in China's exports.
B) China benefits from a fall in the world price of oil
C) Chinese government to cut excess capacity in heavy industry through an advance in
D) U.S. firms to relocate their labor-intensive manufacturing industries to low-cost countries. Explain how each of the above factors changes China’s short-run aggregate supply, long-run aggregate supply, aggregate demand, or some combination of them.

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