GDP Expands 11.4 Percent, Fastest in 13 Years China's gross domestic product grew 11.4 percent last...

 

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GDP Expands 11.4 Percent, Fastest in 13 Years China's gross domestic product grew 11.4 percent last year and marked a fifth year of double-digit growth. The increase was especially remarkable given that the United States is experiencing a slowdown due to the sub-prime crisis and housing slump. Citigroup estimates that each 1 percent drop in the U.S. economy will shave 1.3 percent off China's growth, because Americans are heavy users of Chinese products. In spite of the uncertainties, China is expected to post its sixth year of double-digit growth next year. Source: The China Daily, January 24, 2008 Why might China's recent GDP growth rates overstate the actual increase in the level of production taking place in China? Explain the complications involved with attempting to compare the economic welfare in China and the United States by using the GDP for each country. China's recent double-digit GDP growth rates might overstate the actual increase in China's production because A. goods and services that were traditionally produced in the home are now bought in the market B. a large percentage of China's production is purchased in the United States C. China does not count all its production accurately D. China's GDP is measured in yuan and the yuan is worth less than the U.S. dollar When we attempt to compare the change in economic welfare in China and the United States by using each country's GDP growth rate, China appears much smaller real GDP per person than United States because A. political freedom in the two countries is very different B. the two countries use different currencies C. the relative prices in these two countries are very different D. the government structures of the countries are very different GDP Expands 11.4 Percent, Fastest in 13 Years China's gross domestic product grew 11.4 percent last year and marked a fifth year of double-digit growth. The increase was especially remarkable given that the United States is experiencing a slowdown due to the sub-prime crisis and housing slump. Citigroup estimates that each 1 percent drop in the U.S. economy will shave 1.3 percent off China's growth, because Americans are heavy users of Chinese products. In spite of the uncertainties, China is expected to post its sixth year of double-digit growth next year. Source: The China Daily, January 24, 2008 Why might China's recent GDP growth rates overstate the actual increase in the level of production taking place in China? Explain the complications involved with attempting to compare the economic welfare in China and the United States by using the GDP for each country. China's recent double-digit GDP growth rates might overstate the actual increase in China's production because A. goods and services that were traditionally produced in the home are now bought in the market B. a large percentage of China's production is purchased in the United States C. China does not count all its production accurately D. China's GDP is measured in yuan and the yuan is worth less than the U.S. dollar When we attempt to compare the change in economic welfare in China and the United States by using each country's GDP growth rate, China appears much smaller real GDP per person than United States because A. political freedom in the two countries is very different B. the two countries use different currencies C. the relative prices in these two countries are very different D. the government structures of the countries are very different

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It is mentioned that Americans are heavy users of Chinese products it will mean that Americans shall reduce the consumption of Chinese products when there is an economic slowdown in US which leads to ... View the full answer