Answer the questions below properly citing information from the Taylor textbookand the listed Wall Street Journal articles and other sources (use the AU library’s Wall Street Journal database to get copies of the WSJ readings).
• Provide essay responses to the questions using economic reasoning and terminology whenever possible. Use the graphing/drawing tools in Word to create your illustrations or take photos of hand-drawn graphs and insert into your Word document.
• Grades will be dependent upon successfully meeting the following criteria:
Questions are addressed with accurate use of economic reasoning and terminology.
Clearly and completely illustrated graphs/diagrams are included when requested.NOTE: The diagrams/graphs submitted must be created by the student – do not cut and paste diagrams/graphs from other sources.
Opinion is supported with economic rationale properly citing the textbook and readings.NOTE: You are expected to cite information from the Taylor textbook (include page numbers) for each problem in addition to the sources listed for that problem.
Writing is free of spelling and grammatical errors and meets minimum word requirement of 250 words per problem.
Responses are provided for all problems and sections by the due date/time.
Problem 1: Warnock, E. & Landers, P. (2016, Feb. 11). How Japan’s ‘Abenomics’ reached an impasse. Wall Street Journal (Online).
1. Briefly explain the macroeconomic problems that Japan has been facing for the past 20 years. When did Abenomics start and why? What are the three arrows of Abenomics?
2. Explain how the monetary policy arrow of Abenomics is designed to help the Japanese economy. Analyze how these actions will in theory affect Japan’s interest rates, consumption, business investment spending, exports, inflation and economic growth. Include a well-labeled AD/AS graph in your answer.
3. Why in practice are these policies not working as intended? What other actions could Japan’s government take to improve the country’s economy?