returns in the U. S. economy's aggregate production function have allowed the Chinese economy to the U. S. through an increase in their and institutions

Low returns in the U.S. economy's aggregate production function have allowed the Chinese economy to overthrow the U.S. through an increase in their private and public institutions.

Explanation:

The trade war between the US and the Chinese has lingered with blames and counter-blames. The US government has accused the Chinese of flooding the US market with their goods and services leaving the local industries ailing and not operating at full capacity utilisation. The US entrepreneurs have left the United States for China long time ago for the cheapest factors of production. These goods have legally and illegally found their ways into their  market claimed the US. This in-turn has lead to continuous Balance of Trade and Current Account Deficits. The aggregate production function of the US has been all time low compared to that of China which has taken toll in the lapse with costly factors of production.

Diminishing returns in the U.S economy's aggregate production function have allowed the Chinese economy to overshadow the U.S through an increase in their Physical and Human capital institutions

Explanation:

Aggregate production function :  This explains how total gross domestic product in an economy depends on the available inputs like Physical capita (Machines, other production facilities), human capital(skills and education embodied in the workforce of the economy), Labour.

An Increase in Physical and Human Capital leads to technological progress. C hina was a low-income country and to grow their GDP, the increase their investment in physical and human capital which was not done by the U.S

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