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Essay text:
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. 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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Common topics in this essay:
- Consequences of a High Rate of Economic Growth
- Economic Concern: Unemployment Rate
- The unemployment rate
- Unemployment Commentary
- Unemployment Rate
- Unemployment Rate
- Japan's Economic Development
- Canada's Unemployment Rate
- Happy workers are more productive workers
- Ib Economic Hl Commentary
- Natural Rate of Unemployment
- The Unemployment Rate
- USA vs Japan Economic State
- Demographic Breakdown of Unemployment and Non Labor Force Workers in the Nation
- economic effects of the foreign exchange rate
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