Now shopping mall giant (Dalian) Wanda, owned by Chinaâs richest man Wang Jianlin, and Vanke, the worldâs biggest residential real estate developer, founded by the mountaineering-loving Wang Shi, have âstunned the capital markets,â in the words of Chinese news site The Paper, by announcing a âstrategic partnership.â.
The second macroeconomic consideration of increased imports is the impact on exchange rates. As we have shown in the previous section, as U.S. consumers increase their consumption of imports, the supply of dollars in foreign exchange markets rises.
When potential GDP increases from 16 trillion to 17 trillion, the aggregate supply curve shifts rightward from AS0 to AS1. A rise in money wage rate causes price level to increase and decreases aggregate supply. The aggregate supply curve shifts leftward from AS0 to AS2. A rise in money wage rate does not change potential GDP.