Suppose that in february 2020, policymakers undertake the type of policy that is necessary to bring the economy back to the natural level of output, given the scenario just described. in april 2020, exports decrease because china implements trade restrictions on goods. because of the

Question

Tobie

Business

16 August, 15:23

Suppose that in february 2020, policymakers undertake the type of policy that is necessary to bring the economy back to the natural level of output, given the scenario just described. in april 2020, exports decrease because china implements trade restrictions on goods. because of the

+1

Answers (1)

Know the Answer?

Jacey Wood · Answer 1

I would say that in this hypothetical situation in the future, China may be experiencing a trade imbalance whereby it is receiving too many goods from abroad that are competing too much with its own goods so threatening its' production of those goods. At the present time this is hard to imagine since China produces so many varied goods that actually compete with say goods in North America and it could be said that China has replaced Japan a long time ago in this respect.