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

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Answer 1

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

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

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

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

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

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

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

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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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

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.