Effect of rapid growth of Japan in U.S economy.

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Answer 1

Question

Chapter 37, Problem 1DQ

To determine

Effect of rapid growth of Japan in U.S economy.

Expert Solution & Answer

Explanation of Solution

The American exports increases rapidly due to the speedy growth in the Japanese economy, and this would have a multiplied expansionary effect upon GDP. The boost in exports would entail an increase in the demand for the US dollar, and as a result of an increase in the dollar value, this application would reduce somewhat (but not completely) the increase in exports. On the other hand, it would boost aggregate supply, and this would strengthen the expansionary effect on GDP. The effect of Japanese growth on American inflation would be vague: the increase in aggregate demand would increase prices, while the increase in the dollar value would reduces the cost of imports and creates deflationary situation.

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Answer 2

Question

Chapter 37, Problem 1DQ

To determine

Effect of rapid growth of Japan in U.S economy.

Expert Solution & Answer

Explanation of Solution

The American exports increases rapidly due to the speedy growth in the Japanese economy, and this would have a multiplied expansionary effect upon GDP. The boost in exports would entail an increase in the demand for the US dollar, and as a result of an increase in the dollar value, this application would reduce somewhat (but not completely) the increase in exports. On the other hand, it would boost aggregate supply, and this would strengthen the expansionary effect on GDP. The effect of Japanese growth on American inflation would be vague: the increase in aggregate demand would increase prices, while the increase in the dollar value would reduces the cost of imports and creates deflationary situation.

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Answer 3

Question

Chapter 37, Problem 1DQ

To determine

Effect of rapid growth of Japan in U.S economy.

Expert Solution & Answer

Explanation of Solution

The American exports increases rapidly due to the speedy growth in the Japanese economy, and this would have a multiplied expansionary effect upon GDP. The boost in exports would entail an increase in the demand for the US dollar, and as a result of an increase in the dollar value, this application would reduce somewhat (but not completely) the increase in exports. On the other hand, it would boost aggregate supply, and this would strengthen the expansionary effect on GDP. The effect of Japanese growth on American inflation would be vague: the increase in aggregate demand would increase prices, while the increase in the dollar value would reduces the cost of imports and creates deflationary situation.

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Answer 4

Question

Chapter 37, Problem 1DQ

To determine

Effect of rapid growth of Japan in U.S economy.

Expert Solution & Answer

Explanation of Solution

The American exports increases rapidly due to the speedy growth in the Japanese economy, and this would have a multiplied expansionary effect upon GDP. The boost in exports would entail an increase in the demand for the US dollar, and as a result of an increase in the dollar value, this application would reduce somewhat (but not completely) the increase in exports. On the other hand, it would boost aggregate supply, and this would strengthen the expansionary effect on GDP. The effect of Japanese growth on American inflation would be vague: the increase in aggregate demand would increase prices, while the increase in the dollar value would reduces the cost of imports and creates deflationary situation.

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Answer 5

Chapter 37, Problem 1DQ

To determine

Effect of rapid growth of Japan in U.S economy.

Expert Solution & Answer

Explanation of Solution

The American exports increases rapidly due to the speedy growth in the Japanese economy, and this would have a multiplied expansionary effect upon GDP. The boost in exports would entail an increase in the demand for the US dollar, and as a result of an increase in the dollar value, this application would reduce somewhat (but not completely) the increase in exports. On the other hand, it would boost aggregate supply, and this would strengthen the expansionary effect on GDP. The effect of Japanese growth on American inflation would be vague: the increase in aggregate demand would increase prices, while the increase in the dollar value would reduces the cost of imports and creates deflationary situation.

Answer 6

Chapter 37, Problem 1DQ

To determine

Effect of rapid growth of Japan in U.S economy.

Expert Solution & Answer

Explanation of Solution

The American exports increases rapidly due to the speedy growth in the Japanese economy, and this would have a multiplied expansionary effect upon GDP. The boost in exports would entail an increase in the demand for the US dollar, and as a result of an increase in the dollar value, this application would reduce somewhat (but not completely) the increase in exports. On the other hand, it would boost aggregate supply, and this would strengthen the expansionary effect on GDP. The effect of Japanese growth on American inflation would be vague: the increase in aggregate demand would increase prices, while the increase in the dollar value would reduces the cost of imports and creates deflationary situation.

Answer 7

Chapter 37, Problem 1DQ

To determine

Effect of rapid growth of Japan in U.S economy.

Answer 8

Expert Solution & Answer

Explanation of Solution

The American exports increases rapidly due to the speedy growth in the Japanese economy, and this would have a multiplied expansionary effect upon GDP. The boost in exports would entail an increase in the demand for the US dollar, and as a result of an increase in the dollar value, this application would reduce somewhat (but not completely) the increase in exports. On the other hand, it would boost aggregate supply, and this would strengthen the expansionary effect on GDP. The effect of Japanese growth on American inflation would be vague: the increase in aggregate demand would increase prices, while the increase in the dollar value would reduces the cost of imports and creates deflationary situation.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 37 - Prob. 1DQ Ch. 37 - Prob. 2DQ Ch. 37 - Prob. 3DQ Ch. 37 - Prob. 4DQ Ch. 37 - Prob. 5DQ Ch. 37 - Prob. 6DQ Ch. 37 - Prob. 7DQ Ch. 37 - Prob. 1TY Ch. 37 - Prob. 2TY Ch. 37 - Prob. 3TY

Effect of rapid growth of Japan in U.S economy.

Effect of rapid growth of Japan in U.S economy.

Explanation of Solution

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