EXAMPLE 5-11 Jane Donovan is a portfolio manager for a global mutual fund. Currently, the fund has 10 percent of its assets invested in Chinese equities. She is considering increasing the fund's allocation to the Chinese equity market. The decision will be based on an analysis of the following economic developments and their impact on the Chinese economy and cquity market. What is the impact on SRAS and LRAS from the following factors? 4. Recent data show that business investment as a share of GDP is over 40 percent in China