Can U.S. manufacturing job losses be attributed to the growth of manufacturing in China?
What will be an ideal response?
The rise of Chinese manufacturing is correlated in time with the decline of manufacturing employment in the United States and Western Europe. We do not know with certainty if China's rising manufacturing sector is responsible for the decline in manufacturing in the United States and elsewhere, but cities and communities that compete directly with Chinese exports have not fared well in recent years, and that this is directly a result of Chinese exports. But it is uncertain what might have happened to manufacturing in the United States and elsewhere if China had remained isolated. The question that cannot be answered is whether manufacturing employment in high-income countries would have declined more slowly, or not at all, if China had not grown so fast. Some of the forces shaping the economies of advanced industrial nations are completely independent of China. Technological advances in manufacturing such as the increasing use of automated processes and robotics would probably have proceeded anyway. Telecommunications and transportation advances, which enable firms to locate parts of their production in different countries, would also have occurred.
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When aggregate expenditure = GDP
A) net exports equal zero. B) macroeconomic equilibrium occurs. C) saving equals zero. D) the federal budget is balanced.
If we counted the value of non-cash, or in-kind, benefits given to the poor by the government, the poverty rate would be
A. higher. B. lower. C. not affected.