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Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884 Exercise 16
Explaining Macroeconomic Trends and Fluctuations
Use the following news clip to work Problem.
Spending by Women Jumps
The magazine Women of China reported that Chinese women in big cities spent 63% of their income on consumer goods last year, up from a meager 26% in 2007. Clothing accounted for the biggest chunk of that spending, at nearly 30%, followed by digital products such as cell phones and cameras (11%) and travel (10%). Chinese consumption as a whole grew faster than the overall economy in the first half of the year and is expected to reach 42% of GDP by 2020, up from the current 36%.
Explain the effect of a rise in consumption expenditure on real GDP and the price level in the short run.
Use the following news clip to work Problem.
Spending by Women Jumps
The magazine Women of China reported that Chinese women in big cities spent 63% of their income on consumer goods last year, up from a meager 26% in 2007. Clothing accounted for the biggest chunk of that spending, at nearly 30%, followed by digital products such as cell phones and cameras (11%) and travel (10%). Chinese consumption as a whole grew faster than the overall economy in the first half of the year and is expected to reach 42% of GDP by 2020, up from the current 36%.
Explain the effect of a rise in consumption expenditure on real GDP and the price level in the short run.
Explanation
Verified
Verified
The consumption expenditure has a positi...
Macroeconomics 11th Edition by Michael Parkin
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