MAEC by Jia Yi Jolene Au https://padlet.com/s10184290/kvr7f2nfgs01 China en-us 2018-11-16 10:10:21 UTC 2019-01-24 08:49:00 UTC hello@padlet.com https://padlet-assets.s3.amazonaws.com/icons/Send.png 2nd Article https://padlet.com/s10184290/kvr7f2nfgs01/wish/305186763 Cost-pull inflation is present, because of the increase in the price of raw materials used for production in China's economy.
This "pulls" up the price of the finished products because the cost of production is higher and firms have to increase the price of their goods to maintain the same profit margin. Therefore, the prices of goods are "inflated" and cost-pull inflation occurs.]]> 2018-11-16 10:44:56 UTC https://padlet.com/s10184290/kvr7f2nfgs01/wish/305186763 Ryan Goh's comments gry2 https://padlet.com/s10184290/kvr7f2nfgs01/wish/317154544 Hi Jolene and team, articles look fine.

Make sure that you consider China's issue with inflation, what are the reasons for it and possible solutions that government is going to take etc.]]> 2019-01-03 06:13:56 UTC https://padlet.com/s10184290/kvr7f2nfgs01/wish/317154544 1ND ARTICLE https://padlet.com/s10184290/kvr7f2nfgs01/wish/318157886 2019-01-08 04:21:16 UTC https://padlet.com/s10184290/kvr7f2nfgs01/wish/318157886 GDP s10184290 https://padlet.com/s10184290/kvr7f2nfgs01/wish/318283811 - The analysis of China's  real Gross Domestic Product (GDP), GDP per capita and economic growth will be from 2013 to 2018.
- We will be looking at China's real GDP instead of nominal GDP to find out the change in production of goods and services from 2013 to 2018. 
- From 2013 to 2018, China has been experiencing positive economic growth, which means more goods and services have been produced over the years (2013 to 2018). 
- Looking specifically at 2017 to 2018 : The real GDP in 2017 was US$12,241 Billion and the economic growth rate for 2017 was 6.9%. 
- Doing the calculations the real GDP for 2018 is US$13,036.665 Billion and the economic growth rate for 2018 was 6.5%
-This means that even though China experienced positive economic growth in 2018, its economic growth rate has gone down as compared to 2017's economic growth rate. 
- 2018's economic growth rate is the lowest for the past six years and looking at the statistics, there is a possibility that China's economic growth might continue to slow down over the next few years.
- GDP indicates the demand (spending)/production of goods and services of China. Thus even though China may have a high GDP, it does not mean it has high living standards due to the immense population China has. 
- Looking at the GDP per capita of China from 2013 to 2017, the average production has been increasing and this shows that the living standards of China ha been improving over the years. 
-However the real GDP is an imperfect measure as it does not include the transactions in the black market of China. Thus, it can be inferred that the Real GDP of China is understated. ]]> 2019-01-08 13:47:59 UTC https://padlet.com/s10184290/kvr7f2nfgs01/wish/318283811 Unemployment: unemployment rate https://padlet.com/s10184290/kvr7f2nfgs01/wish/318652633 - Due to the US-China trade war, China's unemployment rate has increased. This is because of the massive withdrawal of foreign capital. 
- According to the National Bureau of Statistics (NBS), the unemployment rate in urban areas was 5.1 percent in July, and has increased to 5.4 percent in August. 
- However, the data did not account for the hundreds of millions of the adult population in the rural area that are unemployed. 
- The Meteor Federation of Journalists thus conducted a survey on the actual unemployment rate in 2017- "China's Unemployment Rate" 
- Total Chinese population in 2016 was 1.383 billion, including 907.47 million people between ages 16 and 59. Deducting 68.6 million students enrolled in high schools, universities, and vocational school leaves a working-age population of 838.87 million, accounting for 60.7 percent of the total population.
- Lastly, the total number of employed was 774.63 million. 
- Chinese peasants do not retire,thus they are under  the “employed” category for life. Elderly peasants, defined as those over the age of 60, numbered 129.28 million, a number that must be subtracted from the total employment figure. 
- The real number of employed, working-age Chinese has become 646.75 million (a difference of 192.12 million compared with the total number of working-age Chinese not enrolled in education or training) 
- By this metric, the real Chinese unemployment rate is 22.9 percent.


]]> 2019-01-09 06:51:46 UTC https://padlet.com/s10184290/kvr7f2nfgs01/wish/318652633 3rd article https://padlet.com/s10184290/kvr7f2nfgs01/wish/318654852 2019-01-09 07:11:55 UTC https://padlet.com/s10184290/kvr7f2nfgs01/wish/318654852 Inflation-current situation https://padlet.com/s10184290/kvr7f2nfgs01/wish/318758264 -In July 2018, China experienced disinflation and the capital city of China experienced a decrease in economic growth rate due to trade dispute with Washington.
-Inflation rate picked up in August 2018 largely due to price increase in non-food products.

]]> 2019-01-09 13:50:57 UTC https://padlet.com/s10184290/kvr7f2nfgs01/wish/318758264 Inflation-CPI https://padlet.com/s10184290/kvr7f2nfgs01/wish/318759149 -The consumer price index(CPI)increase by 2.1% in the previous year which exceeds the predicted rise of 1.9%.
-A better representation of change in price level will be the core consumer price index which rose 1.9% in July 2018.

]]> 2019-01-09 13:52:37 UTC https://padlet.com/s10184290/kvr7f2nfgs01/wish/318759149 Inflation-possible cause https://padlet.com/s10184290/kvr7f2nfgs01/wish/318759787  
-US has increase tariff by 25% on US$200 billion worth of Chinese imports in August 2018.
-China then retaliated by proposing tariffs on US$60 billion worth of US goods, ranging from liquefied natural gas, iron ore and steel to aircraft. 
]]> 2019-01-09 13:53:52 UTC https://padlet.com/s10184290/kvr7f2nfgs01/wish/318759787 Inflation-suggestions to counter inflation https://padlet.com/s10184290/kvr7f2nfgs01/wish/318760312
-To be a "winner" in times of inflation, people in China should protect their purchasing power by  joining a strong trade union or investing that money on a physical assets. 
]]> 2019-01-09 13:54:52 UTC https://padlet.com/s10184290/kvr7f2nfgs01/wish/318760312 Inflation-Cost-push inflation https://padlet.com/s10184290/kvr7f2nfgs01/wish/318762091 -Due to this trade war between China and the United States of America, both price of imports and exports has increased.
-Increase in import prices means that there is presence of cost-push inflation.
-Import price rise --> increase in production cost -->  "pulls" the price of final product higher --> prompts seller to increase selling price --> inflation as a result.
-Due to the price increase in exports of China to the United States of America, people in US may not buy from it anymore and choose to buy from elsewhere instead. This could in turn cause an economic downturn in China's economy.]]> 2019-01-09 13:58:09 UTC https://padlet.com/s10184290/kvr7f2nfgs01/wish/318762091 Unemployment: structural unemployment https://padlet.com/s10184290/kvr7f2nfgs01/wish/318810564 -China's AI policy has lead to an increase in the unemployment rate. 
- Increase competition with robotic production 
- There are several companies in export manufacturing industries in Zhejiang, Jiangsu and Guangdong provinces have reduced their labour pool by 30-40 percent over the past 3 years. 
- It is unavoidable as majority of our jobs can now be replaced by robots. ]]> 2019-01-09 15:10:33 UTC https://padlet.com/s10184290/kvr7f2nfgs01/wish/318810564 Keynesian Model in Action samuel_lee_yi_kai https://padlet.com/s10184290/kvr7f2nfgs01/wish/319082197 > The Keynesian Model explains why the trade war, between the United States of America and China, will negatively impact both countries' economies and adversely affect their average expenditures or Gross Domestic Product.
> An economy's average expenditure consists of the sum of personal consumption expenditure, gross private domestic investment, government expenditure on goods and services, and net exports - which is the country's exports less their imports.
> When a trade war occurs, taxes are imposed on imports, in an attempt to encourage households from that country to purchase more of the good from their local producers because their prices would be lower in comparison to goods which have been imported from other countries' producers. 
>While this may seem like a good idea at first, applying the classical school of thought of supply and demand. Demand of the product will increase because of the substitution effect, which is when the consumers of a good substitute it for a similar good which has lower prices. However, when one applies the Keynesian school of thought, this imposition of taxes on imported goods is bad because both countries will keep imposing heavier and heavier taxes. As a result, net exports for both countries will decrease. This negatively impacts that country's average expenditure or gross domestic product. This means that economic growth will be adversely affected.
> To fix this problem, the government will try to increase their spending on domestic goods and services. This is an effective way of encouraging economic growth because of the spending multiplier effect.
Another way the economy can experience growth is by investment by households.
 > However, this is not always the case, as seen here. This can be explained by the "crowding-out" effect. This occurs when the government is running on a budget deficit and has to borrow to boost Aggregate Demand.
> Thus, there would be little, if any, increase in the real GDP ultimately.
> In this case, the crowding-out effect has caused China to be in massive debt which dampens the effect of the Expansionary Fiscal Policy.
> The reason why average expenditure or gross domestic product is increasing at a slower rate that it should be is because that households are not consuming as much as they should. Instead of spending on goods and services, the Chinese households are saving their income. Even the increase in domestic aggregate demand is not enough to compensate for the saving of the households. To help increase average expenditure and gross domestic product, households need to increase their spending and consumption of local goods rather than saving most of their income.]]> 2019-01-10 03:30:22 UTC https://padlet.com/s10184290/kvr7f2nfgs01/wish/319082197