Tuesday, January 13, 2009

Unit 2: Decreasing Chinese Aggregate demand

A really interesting clip on the shrinking Chinese economy

http://news.bbc.co.uk/1/hi/world/7826768.stm

a) Why are Chinese exports decreasing?
b) What does it mean if China has a trade surplus?
c) If both consumption and exports are falling in China, explain the effect this would have on China's AD and show this on a diagram

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