(a) Oil prices have fallen by about a third since
December of last year. Is this a positive or a negative aggregate
supply shock for China, a net importer of oil? Use the labor market
and the production function to predict the effects of lower oil
prices on employment, output, and the real wage in China. (b)
Because of a decrease in the working-age population, Chinese labor
force is now shrinking (The Economist, Feb 23, 2019). How does this
change your...