Question

The Chinese economy is at full employment when the global

economy goes into recession. Explain the effects of the global
recession on China’s macroeconomic equilibrium in the short run

Answer 1

Step-by-step explanation:

The global recession will impact both developed and developing nations. It will cause a fall in the per capita income, fall in AD(aggregate demand). China's growing economy is also an important source of global demand. Its economic rebalancing will create new opportunities for manufacturing exporters, though it may reduce demand for commodities over the medium-term. China is a growing influence on other developing economies through trade, investment, and ideas.