ccording to the East Asia and Pasific Economic update published by the World Bank in April 2015, the following factors have affected China’s real GDP in 2015. • Global economic recovery supports a moderate increase in China’s exports

Economics: Private and Public Choice (MindTap Course List)
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ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter16: Creating An Environment For Growth And Prosperity
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According to the East Asia and Pasific Economic update published by the World Bank in April
2015, the following factors have affected China’s real GDP in 2015.
• Global economic recovery supports a moderate increase in China’s exports.
• China benefits from a fall in the world price of oil
• Chinese government to cut excess capacity in heavy industry
• U.S firms to relocate their labor-intensive manufacturing industries to low-cost a
countries.

1. How to explain that each factor separately affect China’s real GDP and the price level, starting
from a position of long-run equilibrium. 

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