Extract Practice for Break – theme 2

For exam practice – sit and complete the questions in timed conditions.

10 minutes for reading extract – 50-60 minutes for writing out answers.

Complete and bring to class after the break.

a) Define the term ‘deflation’ and explain how it led to a fall in consumption and investment in
Japan. ( 5 marks)
b) Examine two possible impacts on the Japanese economy of a depreciation in its currency. ( 8
marks)
c) Assess the effectiveness of using ‘monetary easing’ to stimulate economic growth in Japan.
( 10 marks)
d) Discuss the possible likely impacts of Japan’s government adding to its “already
mountainous debt levels” ( 12 marks)
e) Discuss the extent to which Japan’s reforms ( policies) are likely to improve its
competitiveness. ( 15 marks)