3.4

Here are some reading to help you understand about aggregate demand and how the economic recession has impacted China
Read the articles and then answer the 4 questions that follow. (Due on Friday Aug 21)

[|China slow down]

[|China's exports decline]
[|China's exports slump] [|World economic forum] [|China's exports fall]

**Questions**
 * 1) ===Explain the significance of the fall in Chinese exports for the Chinese economy.===
 * 2) ===Analyze the principal causes of the fall in the level of Chinese exports.===
 * 3) ===Assess how the changes in China’s trade position will affect the exchange rate of the Chinese currency, the yuan.===
 * 4) ===Discuss policies that the Chinese government can implement to try to minimize the impact of the fall in exports on economic growth.===

=Aggregate Demand/ Supply=