In Japan during the first half of 2000, the Bank of Japa
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In Japan during the first half of 2000, the Bank of Japan kept interest rates at a near zero level in an attempt to stim
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In Japan during the first half of 2000, the Bank of Japan kept interest rates at a near zero level in an attempt to stimulate demand. In addition, the government passed a substantial increase in government expenditure and cut taxes. Slowly, Japanese GDP began to grow with absolutely no sign of an increase in the price level. Illustrate the position of the Japanese economy with aggregate supply and demand curves. Where on the short-run AS curve was Japan in 2000?
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