Macroeconomics Assignment: Article Analysis

Running head: MACROECONOMICS ASSIGNMENT: ARTICLE ANALYSIS
Macroeconomics Assignment: Article Analysis
Name of the Student
Name of the University
Author Note
Date of Report: 18.07.2018

1MACROECONOMICS ASSIGNMENT: ARTICLE ANALYSIS
Table of Contents
Chapter 1: GDP and Economic Growth.....................................................................................2
Chapter 2: Inflation and Price Level..........................................................................................4
Chapter 3: Wages and Unemployment......................................................................................7
Chapter 4: Savings, Capital Formation and Financial Markets.................................................9
Chapter 5: Business Cycle, Short-term Economic Fluctuations and Aggregate Expenditure. 11
Conclusion................................................................................................................................13
References................................................................................................................................14

2MACROECONOMICS ASSIGNMENT: ARTICLE ANALYSIS
Chapter 1: GDP and Economic Growth
a. Article: “Chinese economic growth slowed a bit in the June quarter”1
Obtained from: https://www.businessinsider.com.au/china-economy-gdp-growth-q2-2018
7#J5Zu6wvk17rrLpzI.99
b. Article Summary:
The economic growth of China, as per the assertions of the concerned article, can be
seen to have slowed down to some extent, in the quarter of June in 2018, the annual growth
rate of the economy of the country being the slowest since the quarter of September of 20162.
Figure 2: Economic activity indicators of China3
The urban fixed asset investment in the country can be seen to be decreasing
drastically, which may have contributed to the slowdown of economic growth of the country
in the last quarter.
c. Analysis:
1 David Scutt, "Chinese economic growth slowed a bit in the June quarter", Business Insider Australia, 2018,
online, Internet, 20 Jul. 2018. , Available: https://www.businessinsider.com.au/china-economy-gdp-growth-q2-
2018-7.
2 Nolan, Peter. "China and the global economy." Charting China's Future. Routledge, 2012. 55-64.
3 David Scutt, "Chinese economic growth slowed a bit in the June quarter", Business Insider Australia, 2018,
online, Internet, 20 Jul. 2018. , Available: https://www.businessinsider.com.au/china-economy-gdp-growth-q2-
2018-7.

3MACROECONOMICS ASSIGNMENT: ARTICLE ANALYSIS
The productivity and growth dynamics of an economy can be analysed with the help
of the aggregate demand and supply Model. It depicts under the rise in the government
expenditure, total productivity of the economy also rises. Investment is one of the most
crucial components of the aggregate demand side of an economy and the fall in the
investment leads to a fall in the aggregate demand in the economy, the result being shown
with the help of the following figure:
Figure 3: Impacts of fall in Investment on output
(Source: As created by the author)
The fall in investment can be seen to reduce the aggregate demand, which in turn
reduces the output (Y) of China in the June Quarter4. This is primarily because with the fall in
the aggregate demand, the sellers also feel less motivated to produce more, which in turn
leads to a fall in the supply and productivity of the country, which again, in the long term can
cause economically stagnating situation.
4 Mankiw, N. Gregory. Principles of macroeconomics. Cengage Learning, 2014.