The annual rate of inflation in Japan falls from 4% to 1% but the annual rate of inflation in Japan's main trading partners remains at 4%. As a result, all other things being equal, it is likely that in the long term
Japan's exports will decrease.
Japan's international price competitiveness will improve.
Japan's current account balance will deteriorate.
injections into the Japanese circular flow of income will decrease.
327 exam-style questions on AQA A Level Economics 2.3 Economic performance, covering 2.3.1 Economic growth and the economic cycle, 2.3.2 Employment and unemployment, 2.3.3 Inflation and deflation, and 2.3.4 Possible conflicts between macroeconomic policy objectives. Each one has a worked solution and a mark scheme showing where the marks go.