What are some environmental impacts of the olympic?

What is the possible impacts on China by holding the Olympic Games?

• the impacts could be positive and negative according to macroeconomic theories.

• Answer:

  Probably negative. Here's why: In an economy where growth is slow, the influx of government spending to get ready for the Olympic Games would spark growth. However, in an overheated economy like China, a large increase in government spending would create a "crowding out" effect. The large amount of government borrowing and spending will significantly increase demand without increasing supply causing a high level of inflationary pressure. Businesses that want to expand will not have access to cash at reasonable interest levels because the government is taking all that cash. Businesses that want to buy raw materials will have to pay higher prices because the government is buy up more. Those prices will be passed on to the consumers, thus causing inflation and slowing the economy. Hope this helps Good luck!