Macro economics Essay Example | Topics and Well Written Essays - 750 words

Macro economics - Essay Example9.7 %. The declined level of useable income would result in slowing down of the consumption tell as well. Higher disposable incomes are prerequisite to boost the economy of a country. This is because higher(prenominal) level of disposable income facilitates to augment consumption and greater step of consumption in turn leads to enhanced spending which is necessary for economic development (Orlik and Davis, china Falters in Effort to Boost Consumption). RETAIL SALES Chinese retail sales have been lowered to 12.7% in the first half of 2013 against the majestic rate of 14.4 % on YoY (Year-on-Year basis) in 2012 (Orlik and Davis, chinaware Falters in Effort to Boost Consumption). ECONOMIC GROWTH Chinese economic growth also decelerated to 7.5% in the second quarter of 2013 against the previous years rate. Apart from the Chinese economic growth rate, this article revealed the growth rate related to the United States. The QoQ (Quarter on Quarter) annual ized basis growth rate related to the United States came out as 6.9% in 2013 which is slightly up from the previous years (2012s) growth rate i.e. 6.6%. However, this rate was far below than the government target growth rate i.e. 7.5% (Orlik and Davis, China Falters in Effort to Boost Consumption). INFRASTRUCTURE The article has revealed that the refreshing residential properties under construction in China have grown to 2.9 % YoY basis in the first half of the year 2013. It also revealed the fact that the touchable estate prices in China especially in the cities such as Beijing as well as Shenzhen have grown by double-digit (Orlik and Davis, China Falters in Effort to Boost Consumption). 2. GOVERNMENT ROLE IN THE ECONOMY Government plays a vital role towards the economic development of a country. Government roles involve developing various economic policies for the country, defending the nations borders, operating courts and legal systems. Government plays an important role to re gulate tax income system of the country along with investing capital for developing various infrastructures within the country. Government has three major roles in the economy. Firstly, it establishes and upholds various property rights. Secondly, it offers nonmarket chemical mechanism for allotting limited resources and thirdly it implements provisions that redistribute wealth and income (Parkin 371-372). In case of Chinese economy as well, the government has strived to take certain measures in impairment of preparing economic restructuring plan through laying its focus on investment related to ensuring energy efficiency along with information technology. It has also encouraged unalike institutions to provide lending to the countrys smaller sized organizations (Orlik and Davis, China Falters in Effort to Boost Consumption). 3. IMPRESSIONS DERIVED FROM THE ARTICLE The article i.e. China Falters in Effort to Boost Consumption published in The Wall Street Journal provides an explan ation to the latest economic developments in China. It has revealed vital facts relating to the growth rate of China with regard to various fields especially unban household. Beijings plan to cut focus on undependable exports also creates a parapet to growth as urban households level of disposable incomes reduces. Initial part of the article discloses various in