Aggregate Demand in Keynesian Analysis

Critical Thinking Questions

In its recent report, The Conference Board’s Global Economic Outlook 2015, updated November 2014 (, projects China’s growth between 2015 and 2019 to be about 5.5%. International Business Times ( reports that China is the United States’ third largest export market, with exports to China growing 294% over the last ten years. Explain what impact China has on the U.S. economy.

What may happen if growth in China continues or contracts?