Define the term abenomics-what are its main components

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Read the article "Abenomics is doing better than you think" and answer the following questions. 1. Define the term Abenomics. What are its main components? 2. What were the main problems of the Japanese economy before Abe took power (both long run problem and short run problems)? 3. The article says that the Bank of Japan used "QQE" to "boost inflation." a. Why do you think the Japanese economy needs more inflation? b. Use the IS-LM model and the AD-AS model to explain how the QQE policy can boost inflation. 4. The article also mentions "short term stimulus" and "long term debt reduction." a. Use the IS-LM model to explain how short term stimulus can help the economy. b. Use a model you learned in chapter 3 to explain how "long term debt reduction" can help the economy.

Reference no: EM13981082

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