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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

The unemployment rate in Scotland has increased to 8.2 percent within the last three months. It is now worse than the UK unemployment rate, which is at about 8.1 percent.In order to fix the problem, the government has now decided to step in, in order to achieve economic growth and get people back into work. The government wants to do this by simplifying the business environment and reform the tax system for companies in order to help them create more jobs. By decreasing the costs of production, the government wants the SRAS curve to shift to the right and therefor increase aggregate supply. If costs of producing are lower, firms will higher more workers, which will result in less unemployment according to theory. 

This article states that Canada's inflation rate has unexpectedly slowed for a second month this past August, meaning a disinflation is taking place. The consumer price index in Canada rose 1.2% in August from a year ago compared to a 1.3% gain in July, showing a slowing down in the rate of inflation. This has reduced pressure for the Bank of Canada governor to raise interest rates. Normally, when a country's price levels are increasing and inflation is taking place, banks are encouraged to increase interest rates. Increasing them make it more profitable for consumers to borrow less and invest more, resulting in a decrease in consumption and therefore a decrease in AD. This will lower price levels in the country in the long run, solving or reducing the problem of inflation.