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6 Cards in this Set
- Front
- Back
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In China's economy a sustainable, “healthy” growth rate is ____________% and price stability has been achieved when the inflation rate is ___________% or less. Explain.
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Chinas Healthy growth rate = 10%
Healthy inflation rate = 5.8% |
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In China's economy the natural rate of unemployment is ___________%. Explain.
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4.1%
The lowest rate of unemployment that an economy can sustain over the long run. Thus, the natural, or equilibrium, rate is the lowest level of unemployment at which inflation remains stable. Also known as the "non-accelerating inflation rate of unemployment" (NAIRU). |
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China: GDP Per Capita ($PPP) in 2012 was ___________, the inflation rate in 2012 was __________%, and the unemployment rate in 2012 was _________%.
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GDP Per Capita (2012) = $6,091.01
Inflation Rate = 2.6 Unemployment Rate = 4.1% |
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In China's economy exports + imports as a percentage of GDP is ________%. What does this number indicate about the effects monetary and fiscal policies taken to stabilize the economy will have on the current account and the foreign sector in general?
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58%
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In China's economy the GINI Index of income inequality is ____________, compared to the US at __________. Explain the significance of these numbers for both economies.
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China = .474
US = .39 Gini coefficient is commonly used as a measure of inequality of income or wealth. 0 represents perfect equality and 1 represents perfect inequality A Gini coefficient of zero expresses perfect equality, where all values are the same (for example, where everyone has an exactly equal income). A Gini coefficient of one (or 100%) expresses maximal inequality among values (for example where only one person has all the income).[3][4] However, a value greater than one may occur if some persons have negative income or wealth. For larger groups, values close to or above 1 are very unlikely in practice. |
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Describe both the monetary policies [“tight money” or “easy money] and fiscal policies [that is, either “expansionary” or “contractionary”] recently pursued by policymakers in this economy [last 5 years or less]. Explain the reasons underlying the direction of both monetary and fiscal policy.
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X
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