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China faces some serious economic problems. One main problem is that China seems to be suffering from excess capacity resulting from an overinvestment in factories, retail stores or infrastructure which leads to an imbalanced supply and aggregate demand relation. Aggregate demand is the total demand for a nation's goods and services from domestic households, firms, the government and foreigners. The article reveals two different approaches to evaluating China's economy: the Keynesian theory and the Austrian school theory. The Keynesians argue that aggregate demand drives stability and that governments can and should help in difficult times. The Chinese government has the tools to increase aggregate demand as it could for example "adjust interest rates and bank reserve requirements, instruct state-owned banks to maintain lending", deploy foreign exchange reserves, or initiate construction and infrastructure projects. On the other hand, the Austrian school of economics believes that it is hard for the government to invest money wisely, particularly in China, where there seems to be an environment of "economic favoritism". The Keynesians may believe that China will be able to manage its overcapacity; however, the Austrian theory argues that the Chinese government will distort resource allocation and further limit aggregate demand. - Julieta Fischer

Ireland's high current unemployment rate of 14.9 percent is a result from its economic situation : Ireland is in a recession. The article clearly stipulates this, there is a 'recession in the real domestic economy'. The recession arose from the housing bubble : mortgages were cheap, people overborrowed and then the high housing prices fell so that people were less wealthy and no longer able to pay their mortgages. Wealth is a determinant of AD. It is the added value of all assets or stocks. If wealth or perceived wealth increases, then so will a household's consumption of goods, thereby shifting demand, as the household feels 'wealthier' or able to purchase more. The reverse is also the case, when wealth declines, demand declines, such as in Ireland. The Irish were much less willing to consume goods, as they believed they were less wealthy or had less money( which they eventually did , upon having to pay mortgages; debt), and so consumption decreased, which thus shifted aggregate demand into a demand slide recession. This is a situation where prices in a nation inflate and output decreases, due to the lesser demand. If less is being produced, less factors of production are required. Thus labor, a major factor of production is no longer required in the economy, which gives firms the incentive to lay off many of their workers. This is the unemployment Ireland is experiencing. It is interesting that the article also depicts the  'austerity drive'  that the Irish government resulted to in the recession.  As it correctly suggests, this is 'self defeating', as during a demand slide recession the Keynesian policy follows that the government should not save its funding, but rather spend. In a time of recession, the government should spend,  so as to decrease unemployment stimulate the economy. If the government spends, this will have a multiplier effect through the economy, as it provides income to households ( by spending, the government employs labor), where househo