Module Title: Principles of Economics

Essay Title: A part of China’s economy

Contents

Introduction of China economics…………………………………………..…..….4

Summary of article…………………………………………………………………...….4

Aggregate supply (AS) models……………………………………………………..…5

Aggregate demand (AD) models………………………………………………..….....6 Government policies to overcome above problems and effectiveness…………7 Conclusion…………………………………………………………………………………..8

Reference list…………………………………………………………………………………9

Introduction of China economics
China’s economy is rapidly huge and expanding in these years. It is the fourth largest country in area after Russia, Canada and USA has experienced multifarious changes in its economic system which has seen it become the second largest economy in the world after USA if measured on the Purchasing Power Parity (PPP) scale. However, China still considered as an emerging economy as per capita incomes fall in the lower-middle level, China is making its presence felt in the global stage by taking big strides in opening up its economy to international trade. There are many economic problems faced by China during the years. And the inflation has become a serious challenge for the developing economy; the surplus of population and the rising unemployment rate and price. According to statistics, more than 250 million migrant workers and their dependents had removed to urban areas to find work. Hence, as China’s economy slows down due to falling external and internal demand, a number of 6.8 million new college graduates poured in to the job market in 2012, China’s unemployment situation has become more complex and more severe problem. As a result, the unemployment will impact the domestic economic development and vice versa. The government needs to step up efforts to create more positions, and the job market need suffer a downturn. This paper develops about