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Unformatted text preview: Hannah Miller October 31, 2010 Chapter 3 Macro2013 3rd edition Book 1. If the government in both China and India fail to stop the spread of AIDS the likely consequences for future economic growth in both countries will not be good. In order for economic growth to occur there needs to be a positive change in the production of goods and services by a country over a certain period of time. Simply put, this cannot happen when the spread of AIDS is happening. It would be taking a toll on the economy, taking people out of work, and not be providing an environment in which economic growth could take place. 2. I think that the governments massacre in China caused an immediate decline in foreign investment and growth in China during the years immediately thereafter. While the government may have thought there actions appropriate at the time, it is there actions alone that were responsible for what would take place after. Growth would not occur in years after the incident because the people in China had lost t rust in the government and...
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