Question

In: Economics

i) 5 macro economic indicators for the last 20 years on China and a cross indicator analysis on the same.

Please write a 500 word essay on the following topic:

i) 5 macro economic indicators for the last 20 years on China and a cross indicator analysis on the same.

Solutions

Expert Solution

Consumer price index- consumer price index is the measure of average change in the price paid by consumers in urban household for a basket of goods and services. These goods and services are broken into eight major group food and beverage, housing , apparels, transportation, medical care, recreation, education and communication. Consumer price index is main indictor of macro economics

Decision on interest rate- interest rates are decided by central bank of any country. Interest rates are lowered by central bank when it wants to expand the credit, when it wants to decrease the money supply in the economy central bank increases the rates so central bank decides the rates.

Retail sales- retail sales means sales through teatail business. Retails sales is the purchase finished goods and services by the consumers and businesses. These goods and services have made it to end of the supply chain. The chain start with producer and it end with retailer. This is a good indicator of macroeconomics.

Industrial production- industrial production is the measure of output of the industrial sector of the economy. The industrial sector includes manufacturing minig and utilities industrial production of china is very high and robust therefore he got it.

Gross domestic product- GDP is the market value of goods and services produced by a country in a particular time and under the or within the territory of the country.GDP growth of china is about in double digits pre covid time.

China has used all tools which it has for the development of its country the above inductors of macroeconomics that shows how china rised in 20 years.


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