For each scenario, assume we are examining the Japanese economy in the short-run using the AD-AS model. Assume that in each scenario, the Japanese economy is initially in short-run equilibrium at point Y1, P1. In each of these scenarios, graph by drawing an additional AD curve and/or AS curve, labeling the new curve(s) AD2 and/or AS2 and label new equilibrium as Y2, P2. The first one has been done for you. Hint: in only 1 scenario do both curves shift.

e) The international price of oil increases. As a result, it is more expensive for Japanese firms to make goods and services.

f) The Japanese currency, the Yen, appreciates in value relative to the US Dollar.

g) The Japanese currency, the Yen, depreciates in value relative to the Australian Dollar.

h) On January 1st of next year, the Japanese minimum wage rises, which reduces production by 2%. At the same time, spending on Japanese goods and services rises by 3%.