A Wall Street Journal article pointed out that Chinas rapidly increasing investment in residential property, particularly apartment
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A Wall Street Journal article pointed out that China’s rapidly increasing investment in residential property, particularly apartment houses, may “boost economic growth but restrain the country’s long-term potential.”
a. How might spending on building residential property increase economic growth in the short run?
b. Why might investment in residential property not lead to long-term economic growth? How is investment in residential property different from the type of investment that is required for long-term economic growth?
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a Investment in residential property particularly apartment houses can stimulate economic growth in the short term through several mechanisms Construc...View the full answer
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