Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 21, Problem 12IAPA
To determine
To explain:
The way in which the real GDP growth of China can be compared with that of the United States, whether a slow growth in China can mean a recession.
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Stagflation and recession are increasingly being used to
describe where the economy might be headed. The
World Bank warned on 14th June 2022, that global
economies were at risk of stagflation if not recession.
"The world economy is again in danger," David
Malpass, president of the World Bank, said in the latest
edition of the Global Economic Prospects report. "It is
facing high inflation and slow growth at the same time.
Even if a global recession is averted, the pain of
stagflation could persist for several years - unless major
supply increases are set in motion.
Explain the main differences between stagflation and
recession, if we had to face one, which one would be
less painful?
China GDP growth slows to 27-year low
China's economic growth slowed to 6.2% in the second quarter, its weakest pace in at least 27 years, as demand at home and abroad faltered in the face of mounting U.S. trade pressure.
How does China's real GDP growth compare with that of the United States? If China's growth slows further, would that mean it was in a recession?
China's real GDP growth is
than that of the United States. If China's growth slows further, China
O A. greater;
will not be in a recession because real GDP growth although slowing is still positive
O B. greater;
will be in a recession because real GDP growth is slowing
C. greater;
will not be in a recession because China's real GDP growth is greater than U.S. real GDP growth and we know that the United States is not in a recession
O D. smaller;
may or may not be in a recession. It depends on the relationship between real GDP and potential GDP
Click to select your answer.
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The following table shows real GDP for both the United States and China, in billions of 2009 dollars:
Real GDP Measured in Billions of 2009
Dollars
2015
2014
$8, 169
China
$7,642
$16,349
United States
$15,962
a) Which country's economy was
larger in 2014?
United States
China
b) Which economy grew faster between 2014 and 2015?
China
United States
c) Which economy was larger economy in 2015?
United States
<9 China
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Chapter 21 Solutions
Foundations of Economics (8th Edition)
Ch. 21.A - Prob. 1SPPCh. 21.A - Prob. 2SPPCh. 21.A - Prob. 3SPPCh. 21.A - Prob. 4SPPCh. 21.A - Prob. 5SPPCh. 21.A - Prob. 6SPPCh. 21.A - Prob. 7SPPCh. 21.A - Prob. 1IAPCh. 21.A - Prob. 2IAPCh. 21.A - Prob. 3IAP
Ch. 21.A - Prob. 4IAPCh. 21.A - Prob. 5IAPCh. 21.A - Prob. 6IAPCh. 21.A - Prob. 7IAPCh. 21 - Prob. 1SPPACh. 21 - Prob. 2SPPACh. 21 - Prob. 3SPPACh. 21 - Prob. 4SPPACh. 21 - Prob. 5SPPACh. 21 - Prob. 6SPPACh. 21 - Prob. 7SPPACh. 21 - Prob. 8SPPACh. 21 - Prob. 9SPPACh. 21 - Prob. 10SPPACh. 21 - Prob. 1IAPACh. 21 - Prob. 2IAPACh. 21 - Prob. 3IAPACh. 21 - Prob. 4IAPACh. 21 - Prob. 5IAPACh. 21 - Prob. 6IAPACh. 21 - Prob. 7IAPACh. 21 - Prob. 8IAPACh. 21 - Prob. 9IAPACh. 21 - Prob. 10IAPACh. 21 - Prob. 11IAPACh. 21 - Prob. 12IAPACh. 21 - Prob. 1MCQCh. 21 - Prob. 2MCQCh. 21 - Prob. 3MCQCh. 21 - Prob. 4MCQCh. 21 - Prob. 5MCQCh. 21 - Prob. 6MCQCh. 21 - Prob. 7MCQ
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