Figure A below depicts the demand and supply of Japanese yen in the foreign currency exchange market. Figure B below depicts the aggregate supply-aggregate demand model for the Japanese economy. Use these figures to answer the next two questions:

-Assume the Japanese economy is illustrated at the intersection of AD₁ and SRAS₁.If the Bank of Japan (the Japanese central bank) increased the supply of yen from five trillion to six trillion,the Japanese price level would ____________ in the short run and increase from 115 to 120 in the long run.

Question

Figure A below depicts the demand and supply of Japanese yen in the foreign currency exchange market. Figure B below depicts the aggregate supply-aggregate demand model for the Japanese economy. Use these figures to answer the next two questions:

-Assume the Japanese economy is illustrated at the intersection of AD₁ and SRAS₁.If the Bank of Japan (the Japanese central bank) increased the supply of yen from five trillion to six trillion,the Japanese price level would ____________ in the short run and increase from 115 to 120 in the long run.

Quizplus · Accepted Answer

The Answer of Figure A below depicts the demand and supply of Japanese yen in the foreign currency exchange market. Figure B below depicts the aggregate supply-aggregate demand model for the Japanese economy. Use these figures to answer the next two questions:

-Assume the Japanese economy is illustrated at the intersection of AD₁ and SRAS₁.If the Bank of Japan (the Japanese central bank) increased the supply of yen from five trillion to six trillion,the Japanese price level would ____________ in the short run and increase from 115 to 120 in the long run.

Figure a Below Depicts the Demand and Supply of Japanese