Unlikely, economists say. Any measures to lower imports of Chinese products — say, a tariff on a specific industry — will likely result in a tit-for-tat response from China, resulting in higher prices for U.S. exports.

Many U.S. manufacturers then will simply move operations to other countries with low costs, such as Vietnam. Raising tariffs is not a guaranteed remedy for regenerating U.S. manufacturing jobs, Prasad says.

China could seek to make accessing the Chinese market difficult for American companies. That could mean unforeseen licensing requirements and administrative procedures. Chinese students could be held back from attending American universities. Airbus’ planes could be favored over Boeing. Intellectual property laws may not be enforced as aggressively. China “can start to restrict its market even more," Prasad says. "There’s a lot they can do.”

Meanwhile, higher prices on Chinese imports to the U.S. will affect working-class Americans disproportionately, possibly leading to concerns about inflation

⇒ When stock prices soar, despite the stock value being high or low, consumers will not be willing and able to purchase or invest in the stock unless they have raised wages. Therefore, demand may slip, especially luxury items, leading to businesses closing down in extreme cases.

⇒ Despite the soar in stock prices, according to <name of law>, the economy will adjust itself as <what the law does>.

2. Steady job creation

⇒ More jobs created signifies more jobs available for the labour force, thus increasing the employment rate

⇒ With more jobs, more people are able to work, resulting in more profits generated, thus more investments will be made, causing consumers to spend more, which in turn increase tax revenue and increase demand. Thus, suppliers are more inclined to raise wages and employ more workers.

3. Increase employment in commercial, health-care & hospital sectors

⇒ More people in the labour force will be employed, decreasing the unemployment rate, hence working towards full employment to achieve a stable economy

4. Strengthening of US dollar

⇒ citizens can take advantage of the currency exchange rate

⇒ can travel more frequently

⇒ more PRs and foreigners will want to take up US citizenship to enjoy the benefit

5. Perked up Investment in commercial and healthcare building

⇒ Employment growth in these sectors such as healthcare and hospitality

6. Slow rising rate of inflation

⇒ Inflation remains below target of 2%, (disinflation)

⇒ Gasoline and oil prices have dropping November as compared to October but slowly increased again in December when oil producing countries decided to cut production

7. Rise in Household Spending

⇒ Rose just by 0.2% in nov from the month before = higher demand = more consumers are able and willing to purchase products = more goods being manufactured = more suppliers increase variety of goods & expand to other markets = better economy

⇒ Wage & Salary income

→ Rose 3.5% in Nov from Oct (Slowest year-over-year gain since Dec 2013 despite 3.5% annual pace in 3rd quarter - the best quarterly increase in 2 years)

⇒ Economy is growth at rate of 1.7% for 3 months, however foretasted rate was 1.9% which means growth rate is lesser than expected, next year expected growth rate is 2.1%

2. Consumer spending

⇒ Domestic -  2/3 of Total US output

⇒ Soft Demand (for factory-made goods)

⇒ Smaller share of adults holding jobs = Smaller labour force = Smaller employment rate

⇒ Increased housing & health-care expenses = spend less

⇒ Consumer wage gain is at minimum

2.1 Household spending

⇒ 0.2% in Nov

⇒ Slowdown from Aug and Oct

⇒ When consumers cut back on spending, tax revenue reduce, which cause demand to slip. Suppliers will cut back which results in lower wages and higher unemployment that can lead to a recession. In extreme cases, the lack of tax revenue can cause government defaults and the slowdown of banks lending money can create panicked bank runs.

3. Price inflation

⇒ Measured by personal-consumption expenditures index (can copy graph)

⇒ Rose by 1.4% from Nov 2015 = reflected stabilizing energy prices & firmer consumer demand that allows businesses to pass = Raise benchmark interest rate along price increases

⇒ Inflation readings now are below central bank's 2% target despite support from Fed’s move

⇒ Could be temporary such as gasoline & oil costs which slumped in Nov but rebounded in Dec due to oil-producing countries agreeing to cut production = very disastrous

4. Meager economic output

⇒ Mining exploration, shafts & wells doubled from mid-2009 to end of 2014 = high oil prices & new technologies that spur investment

⇒ Fell by 2/3 since that point, dragged down output

5. Strength of US dollar

⇒ Challenge to manufacturers seeking to sell products into foreign markets (orders for long-lasting durable goods are down slightly in 2016 compared with 2015 despite overall economic growth) = foreign goods in local market is limited

⇒ Possibility of boosting businesses, consumers & economic growth (tbc - implementation, response of businesses & households)

⇒ Currently have some optimism being developed

2. Relatively conservative planning on market outcomes & aggression on restricting costs

⇒ Spending on mining exploration doubled as high oil prices and new investment spurred investments

⇒ Income growth

⇒ Consumer spending

⇒ Inflation

⇒ Growing rate at 1.7% in Oct, Nov & Dec 2016 (expects 1.9% growth in 2016 & 2.1% in 2017)

2. Weakened consumer spending, income growth and inflation (after a short-lived spurt last month)

⇒ Weakened demand for goods = more businesses investing lesser = more suppliers supplying less amount & variety of goods

⇒ Keynesian & Classical Theory

⇒ Uncertain global economy