GDP Growth
a. 2.5%
b. 2.3%
c. 1.6%
d. 1.9%
Answer: B
2.3%, the lowest in decades due to the COVID-19 pandemic.
What does inflation mean in simple terms?
Inflation means the general increase in prices of goods and services over time, reducing the purchasing power of money.
What does it mean when someone is unemployed?
It means they don’t have a job but are actively looking for work.
How did COVID-19 impact the global economy, including China’s?
COVID-19 disrupted trade, travel, and businesses, leading to slower economic growth worldwide
What is Fiscal Policy?
Fiscal policy involves government decisions on taxes and spending to influence the economy.
Why did China’s economy slow down during the COVID-19 pandemic?
The economy slowed because lockdowns disrupted businesses, reduced exports, and lowered consumer spending.
Why is low inflation sometimes bad for an economy?
Low inflation can signal weak demand, where people aren’t buying enough goods and services, slowing down economic growth.
Why is unemployment among young people in China a concern?
It’s a concern because it wastes the potential of educated youth, reduces economic productivity, and can lead to social unrest.
Why is the real estate sector important to China’s economy?
The real estate sector drives investment, creates jobs, and supports related industries like construction and manufacturing
How can cutting interest rates help the economy?
Lower interest rates make borrowing cheaper, encouraging businesses and people to spend and invest
What is one reason China’s economy rebounded after the pandemic?
a)The government reduced all taxes permanently.
b)Businesses completely stopped relying on international trade.
c) The government introduced stimulus measures, such as investing in infrastructure and supporting businesses.
d) The government implemented strict austerity policies.
Answer: C
The government introduced stimulus measures, such as investing in infrastructure and supporting businesses.
What is one factor that caused inflation to drop in China recently?
Weak consumer spending, as people saved more money and spent less during uncertain times.
What role do small businesses play in reducing unemployment?
Small businesses create jobs in local communities, helping to reduce overall unemployment.
What does a trade war mean, and how has it affected China?
A trade war is when countries impose tariffs or restrictions on each other’s goods. It has increased costs for Chinese exporters and slowed trade.
What is one way the government can support struggling industries?
The government can provide subsidies or tax breaks to help industries recover and grow
What does it mean when an economy grows "slower than expected"?
It means the economy is expanding but at a lower rate than predicted, often due to challenges like low consumer demand or external shocks.
How can inflation affect daily life?
Inflation can make things like food, housing, and transport more expensive, putting pressure on household budgets.
How can unemployment affect a country's economy?
High unemployment reduces household incomes, lowers consumer spending, and slows economic growth.
What is the Belt and Road Initiative?
It is China’s global project to build infrastructure and strengthen trade relationships with other countries.
Why is diversifying trade partners important for China?
It reduces reliance on a single country for exports, helping protect the economy from trade disputes
Why is GDP growth important for a country like China?
GDP growth is crucial as it creates jobs, raises living standards, and supports global trade relations.
What is the difference between inflation and deflation?
Inflation is when prices go up, while deflation is when prices go down, often leading to reduced business profits and economic stagnation.
What policies can help reduce unemployment?
Governments can invest in job training programs, support small businesses, and create public sector jobs
How did strict COVID-19 lockdowns affect daily life in China?
They caused businesses to close, people to stay home, and reduced overall economic activity
How can encouraging domestic consumption help China’s economy?
It increases demand for local goods and services, boosting businesses and creating jobs