3. The best way to describe the effect of the Chinese stock market crash of 2015 on Chinese GDP is which of the following? The stock market crash caused the currency to lose value, which meant more exports and less AD, hence less GDP Lower stock prices reduced consumer wealth, and this could be expected to reduce domestic private consumption (C) and shift AD inward to the left Lower stock prices meant that people had less money to buy imports, and this would reduce AD and therefore GDP through lower net exports None of these correctly describe the effects of the crash on Chinese GDP.

3. The best way to describe the effect of the Chinese stock market crash of 2015 on Chinese GDP is which of the following? The stock market crash caused the currency to lose value, which meant more exports and less AD, hence less GDP Lower stock prices reduced consumer wealth, and this could be expected to reduce domestic private consumption (C) and shift AD inward to the left Lower stock prices meant that people had less money to buy imports, and this would reduce AD and therefore GDP through lower net exports None of these correctly describe the effects of the crash on Chinese GDP.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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