(Answered) 1 chinese growth slowed to its slowest rate in 25 years in

Engineering

1. Chinese growth slowed to its slowest rate in 25 years in 2015. Most analysts are pointing to the enormous amount of housing and manufacturing capacity that has been built in the last ten years as the main cause. Whole cities are empty and factory production is well below capacity. Explain what is happening in the Chinese economy using the AS-AD model.

2. What can the Peoples Bank of China (PBOC) do to try to solve the problem created in question 1? You need a graph to answer this question.

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