ADB forecasts China 2016 growth at 6.5%


The article reports the decline in Economic Growth rate in China. This decline in is caused due to decrease in global demand for Chinese Goods & Services i.e. Exports (X), decline in Investment (I) and financial volatility, adding up to a large decrease in Aggregate Demand. The problem is being addressed through Government spending (G) on Infrastructure and green Investment.


Topics include Economic Growth, Components of Aggregate Demand, Investment, Consumption, Government spending. Use the National Income Equation and Macroeconomic diagrams to explain the current situation and the possible solutions through Interventionist and Market based Supply side and Demand side policies.


Evaluation will cover the effectiveness of Supply and Demand side policies in short term and long term in achieving Economic Growth.