Macroeconomics

Table of Contents

1. Topic pack - Macroeconomics - introduction
2. 2.1 The level of overall economic activity (notes)
3. 2.1 The level of overall economic activity (questions)
4. Section 2.2 Aggregate demand and supply (notes)
5. Section 2.2 Aggregate demand and supply (simulations and activities)
6. 2.2 Aggregate Demand and Aggregate Supply (questions)
7. 2.3 Macroeconomic objectives (notes)
8. Low Unemployment
9. 2.3 Macroeconomic objectives (questions)
   1. Macroeconomic objectives - self-test questions
   2. Short questions
   3. Data response question (1)
   4. Data response question (2)
   5. Long questions
10. 2.4 Fiscal policy (notes)
11. 2.4 Fiscal policy (questions)
12. 2.5 Monetary policy (notes)
13. 2.5 Monetary Policy (questions)
14. Section 2.6 Supply-side policies (notes)
15. 2.6 Supply-side policies (questions)
16. Print View

Data response question (2)

Read the article Japan sees end to deflation curse and then answer the questions below. (You can read the article in the web window below, or follow the previous link to read the article in a new web window)

Question 1

Define the terms:

• inflation
• deflation

Question 2

Using aggregate supply and demand diagrams, analyse the changes currently taking place in the Japanese economy.

Question 3

It has been said that "a small amount of inflation in the system is not a bad thing". Evaluate this statement.