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Inflation is defined as a sustained and continuous increase in the general level of prices of goods and services in the economy.
- There is stability in the inflation rate, "mild growth"  in consumer prices is being reported.
- Although the increase in CPI is at its highest(1.6%) among the nine months, it did not reach the full quota of 3%

http://www.blackseagrain.net/novosti/chinas-inflation-on-solid-growth-as-economy-stabilises

CPI measures the price changes of a fixed basket of goods and services commonly purchased by resident households over time.

"The consumer price index (CPI) rose 1.9 per cent year-on-year in October, up from September's 1.6 per cent, the National Bureau of Statistics (NBS) said in a statement." This shows that there is inflation as the CPI increased meaning that the price of goods and services got more expensive.

It was also stated that "Food prices, which account for a significant part of the CPI calculation, dropped 0.4 per cent from a year earlier, dragging down the CPI number by 0.08 percentage points." This shows that goods such as food has had a price decrease but services and other products (furniture) might have had a price increase which is why CPI value rose overall.

The inflation on consumer good is mild while producer prices strongly increase, we can conclude that the inflation is mainly demand-pull inflation on consumer goods. This is logical as the government has pumped in part of the $7 billion purchase capital goods causing Aggregate Expenditure to increase which in turn cause even more increase in the GDP through the multiplier effect.

Hence because of this increase in demand for capital goods, the price of capital goods increase causing GDP to rise. However, because the rise in price is due to increasing capital goods bought, firms might not translate the costs into consumer goods. Together with the fact that the costs are partly borne by government's injection of funds, this will further cushion the effect of the inflation in the capital goods on consumer goods. This explains why consumer goods has a mild inflation when producer prices increases

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Rui Yi
Christine
Yong Kiat
Ernest
Kah Chuen

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The Unemployment Rate tells us the proportion of the Labour Force who have not found jobs yet, even though they are able and willing to work and are actively looking for jobs.

- Unemployment rate is at its lowest in years (3.95%)
- decrease in exports, government spending and manufacturing to increase in domestic consumption
- $7 billion was used to help boosts unemployment
http://thebricspost.com/china-unemployment-lowest-in-years/

By shifting their focus on manufacturing and exports, it might cause unemployment in the sector. Such unemployment are mainly frictional as people being retrenched from those sectors will need time to look for jobs that are available as government focuses on the domestic market. Structural unemployment might occur as well as their skills in the export and manufacturing market might not be relevant in the domestic market. However, possibly due to the huge domestic market in China, the unemployment from downsizing the export and manufacturing industry is being offset by the employment of the domestic industry, which explains why the unemployment rate is decreasing instead of increasing. Perhaps the government sees more potential coming from the domestic market which is why they are focusing on it, and sure enough it alleviated unemployment issues.

It is however not only due to the changing focus of the market that caused the decrease in unemployment. By pumping $7 billion to increase capital input and also implementing employment policies, the government intervention helps in the decrease of unemployment too. By spending the money on capital inputs, manpower are needed to build them, hence firms will employ more workers to do the job and employment will thus increase. This is in the short term of building the capital goods such as infrastructures, machinery, etc. The increase in the amount of capital goods will lead to an increase in productive capacity in the future, causing an outward shift in the production possibility curve of the country. This translates to long term growth in the economy and manpower being required to operate and maintain the facilities, hence, assuming that firms would try to maximize production, they will employ more workers to operate the facilities pulling the economy closer to full employment.

It was also stated that the $7 billion was used for implementing employment policies, this suggests that firms will be given incentives to hire more workers. By doing so, the firms will benefit in some ways while the economy will move closer to full employment, if the policies also includes plans on increasing employment rates after the capital goods are ready, the economy will continue to move towards a greater full employment figure than what China can achieve now. Hence, there will be steady increase in employment rate and growth

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From: https://atradiusdutchstatebusiness.nl/en/publications/country-report-china-2017.html
It is seen that the GDP of China has been increasing at a decreasing rate the given estimate for year 2016 was an estimate and the year 2017 was a forecast but they are quite accurate to the current statistics. Retail sales has been their highest component from the data followed by private consumption and industrial production. We could see that industrial production has been decreasing as part of the GDP over the years, this shows that there is less and less focus in this industry for China. Their real fixed investments as a percentage of GDP are also decreasing.

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GDP is defined as the monetary value of all the finished goods and services produced within a country's borders in a specific time period.
- Quoted from the article, "the world's second-largest economy is likely to post growth of 7 percent in the second half of the year thanks to rapid household spending. First half GDP growth was 6.9 percent", it shows that the people in China are spending more money and the economy of the country is growing. It shows that the economy of the country is in good shape and the country is moving forward.
- 6.9% Growth in GDP during the third quarter this year which hits the target of their desired annual growth of 6.5%
- Growth was due to higher than expected rise in trade and bank lending
- There is an expected slowdown in growth however due to contractionary fiscal policy and slower credit growth.

https://www.cnbc.com/2017/10/18/chinese-q3-gdp-china-reports-third-quarter-gross-domestic-product.html

It was already discussed in the previous parts how GDP increase due to Government expenditure on capital goods. And that it was stated in the article that growth in China is stable.

Having said that, with the increase in output capacity in the near future, there is lots of potential growth in the China economy, GDP might be set to rise when the capital goods are ready.

When the capital goods are ready, there will be more room for employment, more people will be employed and thus real disposable income of the people increase. Due to this, if the Marginal Propensity for consumption is decently high, the increase in real disposable income will cause consumption to increase. Also, since the government expenditure is on capital goods, it suggests that there are improvements in the technology of production or at least an increase in the number of output factors which will cause production efficiency to increase lowering cost. This might reflect on a lowering in prices of the goods thus giving more incentives for the people to spend. With an increase in consumption, the GDP will increase by a multiplier effect. The increase in capital goods also suggest that the economy will have their full employment mark increased as well, this will alleviate inflation, with the increase in consumption and decrease in inflation in the near future, it is seen that the real GDP might increase.

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(1) On the right track. But you would need to develop your analysis further to show more depth. (Done)
(2) Incorporate a few relevant graphs, diagrams and pictures to enhance the visual impact of your Padlet wall. A relevant backdrop too.

(3) Should also do some additional research so that your final report is not just a summary of the main points on the articles. (Done)
(4) Please put the names of all group members in the header. (Done)

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China's Unemployment at it's throughout 4 years

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China's Unemployment at it's throughout 4 years

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Information about unemployment from Statista (Additional readings)

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Information about unemployment from Statista (Additional readings)

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https://www.statista.com/topics/1317/employment-in-china/

It is said that there are increasing demand for labor in urban areas of China. However, there are some areas which are not doing as well. The $7 Billion spent on capital good is said to be in Beijing which is an Urban area, the government should also spend funds on less urban areas such as Henan which might have a higher proportion of unemployed.

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From:
https://www.investing.com/analysis/inflation-and-monetary-policy-in-china-200175710
As we can see on the graph, since 2012, the inflation rate has been steadily increasing compared to the huge surge and dip  between 2007 to 2009. With growth, inflation is inevitable, but a steady inflation can suggest a good outlook for the country. It might also suggest that government intervention is involved in the economy