Question
A sales tax hike dampened spending and sent Japan into a recession in the second and third quarters of 2014. Growth resumed in the fourth
"A sales tax hike dampened spending and sent Japan into a recession in the second and third quarters of 2014. Growth resumed in the fourth quarter but at a slow annualised rate of 2.2 per cent".
On an AS-AD graph show the macroeconomic equilibrium in Japan in mid-2014.
and
Show the change that occurred during the fourth quarter of 2014. Explain the economic reasoning for these changes.
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Economics Today The Macro View
Authors: Roger LeRoy Miller
18th Edition
0133884872, 978-0133884876
