Japan's natural rate of unemployment has been estimated to be approximately 2.9%. In May 2021, its actual unemployment rate was 3.0% and inflation was -0.7%. This indicates a(n) Inflationary gap. Background Information - Japan Recessionary gap. Source - Statistics Bureau of Japan . Stagflationary gap. 2020 Private Consumption Expenditure (2020 |289.5 trillion JPY) . Long-run equilibrium. 2020 Investment (2020 JPY) 136.8 trillion 2020 Government Expenditure (2020 JPY) 113.2 trillion . What was Japan's CPI in 2015? 2020 Government Tax Revenue (2020 JPY) 42.1 trillion 2020 Exports (2020 JPY) 83.7 trillion 2020 Imports (2020 JPY) 85.0 trillion So far in 2022, the price level in Japan has risen 0.7%. As a result of 2020 Private Consumption Expenditure (2015|285.2 trillion this the demand curve, we have seen a slight decrease in the JPY) quantity consumed. This is an example of the effect. 2020 Investment (2015 JPY) 134.2 trillion 2020 Government Expenditure (2015 JPY) 113.0 trillion Shift of; wealth 2020 Government Tax Revenue (2015 JPY 41.4 trillion 2020 Exports (2015 JPY) 91.7 trillion Shift of; interest rate 2020 Imports (2015 JPY) 96.2 trillion Movement along; wealth 2019 GDP (2019 JPY) 558.5 trillion 2019 GDP (2015 JPY) 553.1 trillion Movement along; interest rate 2018 GDP Deflator 100.3 2020 CPI (base year = 2015) 101.8 Over the course of 2020, the labor union participation and activities 2019 CPI (base year = 2015) 101.8 increased slightly in Japan. All else equal, this likely put 2018 CPI (base year = 2015) 101.3 pressure on unemployment. 2020 Total Population 125.8 million people . Upward; frictional 2020 Adult Population 110.8 million people 2020 Employed Population 66.8 million people Upward; structural 2020 Not in the Labor Force 42.1 million people (The currency of Japan is the Japanese Yen, abbreviated JPY, JPY, or Y. As . Upward; cyclical of Monday, April 4, the exchange rate to the US Dollar was 122.75 JPY to 1 USD.) . Downward; frictional . Downward; structural Downward; cyclical Nominal hourly wages have risen in Japan over the past year. This represents [a decreasing shift of/an increasing shift ofo change in] SRAS and [a decreasing shift of/an increasing shift ofo change in] LRAS