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Essay

Ib Economic Hl Commentary

Essay specific features

 

Issue:

Miscellaneous

 

Written by:

Winnie W

 

Date added:

May 17, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 730

 

Was viewed:

4604 times

 

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Essay content:

To increase the consumer spending and inflation rate, demand-pull inflation has to be chosen. If cost-push inflation is applied, it will worsen the problem of sluggishness in domestic goods demand as the price of goods rises. Japan should adopt discretionary fiscal policy to increase Aggregate Demand (AD) for domestic goods...
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Lowering tax for domestic goods will encourage Japanese citizen to spend more; hence AD in Japan will increase to achieve higher level of inflation. Figure 1 : "The Relationship Between Inflation and Unemployment" Referring to figure 1, as the inflation rate successfully increased it will followed by decrease in unemployment rate as the demand for workers increase...
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