More private investment will put China’s recovery on firmer ground
The article emphasizes the need for private Investment for stabilizing the Economic Growth in China. In China the Private Producers contribute to more than 60 % of GDP and 80% of total Jobs. Apart from the Interest rates , The Investment (I) depends on the conducive environment mainly in terms of financing, legal guarantees and policy. The Increase in Investment will provide Injection in the circular flow of Income and lead to increase in Aggregate Demand and Economic Growth .
Topics include Economic Growth, Components of Aggregate Demand, Circular flow of Income , Investment, Consumption, Government spending , Interest rates and Money supply and expansionary Monetary policy . Use the National Income Equation , Circular flow of Income and Macroeconomic diagrams to explain the current situation and the possible solutions through Expansionary Monetary policy, Market based Supply side and Demand side policies.
Evaluate the effectiveness of Expansionary Monetary policy, Market based Supply side and Demand side policies in short term and long term in achieving Economic Growth.