Macroeconomics Assignment Sample

Added on - 21 Apr 2020

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Running head: MACROECONOMICSMacroeconomicsName of the StudentName of the UniversityAuthor note
1MACROECONOMICSTable of ContentsIntroduction...................................................................................................................2What, how and for whom..............................................................................................2Self interest, Social interest or both..............................................................................4Gross Domestic product and business cycle...............................................................7Comparison of GDP growth......................................................................................8Price Level or Inflation in China..................................................................................11Exchange rate and Currency analysis........................................................................13Conclusion..................................................................................................................14References.................................................................................................................15
2MACROECONOMICSIntroductionChina is listed as one of the fastest growing Asian nations. In the last fewdecades, the economy has recorded unprecedented growth rate and catch up withmany developed nations. The paper analyses macroeconomic perspective of China.The three basic questions of economy – what to produce, how to produce and forwhom to produce are evaluated in context of this country. The next aspectconsidered is the fiscal and monetary policy adapted by the government to stimulatethe economy. When discussing government policies, the status of governmentbudget is an important thing to be considered. In order to assess the economicperformance of nation, the historic trend of GDP is considered and compare with twoof its contemporary nations. Apart from GDP, inflation and exchange rate trends areexplored.What, how and for whomAs far as agricultural product is concerned, China stands first in theproduction of farm output. Despite having only 10 percent arable land the countrysupplies 20 percent of food for world population. Agricultural industry is one of thevital industries of China. The primary agricultural products are rice, potatoes, tea,millet, cotton, wheat, sorghum, soybeans and oilseed. After agriculture the next vitalsector of the country is industry. Industrial output in China includes manufacturing,mining, power and construction. China holds a leading position in manufacture offertilizer, steel and cement. Other industries include machinery, food processing,petroleum, cement and automobile, transportation equipments, consumer productssuch as toys, footwear and electronic and information technology.
3MACROECONOMICSForeign trade has significant contribution in China’s economic growth. It isoften called workshop of the world. A considerable portion of nation’s export ismanufacturing products and includes DVD players, toys, textile, shoes, sea food,electronic equipment, body jewellery, food products, kitchen wares and others(rgs.org, 2017). The export trend has now shifted to production or assembly ofcameras, television, refrigerators, air conditioners and washing machines. China isone of largest producers of chemicals and primary products. Half of the world’s flatgrass and cements are produced in China and one third of the aluminium productsproduced in China. China has made significant progress in car and truckmanufacturing and has left Japan behind.China holds the status of a developing nation and a labour abundanteconomy. The shortage of arable land makes agricultural production mainly labourintensive. China primarily enjoys the advantages of a low cost labour supply.However, agricultural productivity is enhanced with application of importedtechnology. The labour productivity in China is highest in the world. The advantagesof labour cost raise China at the status of a middle income nation. However, Chinahas currently faced the problem of rising wage cost as the surplus labour exhaustedin rapidly expanding industries and migration of rural labours to the urban centres.Therefore, China has recently made capital investment to raise capital output ratio(imf.org, 2017). The capital investment has contributed to recent rapid growth ofChina.As like export, China imports various goods. The major imported goods inChina are electrical and machinery, medical and optical equipment, motor vehicles,oil and metal fuels and metal ores. From nation in European Union China importsgoods and service worth about 200 billion euro. Transport and machinery equipment
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