Tuesday, April 22, 2008

Unit 3: Aggregate supply and the working population

This BBC article says that the size of the working populaton in Japan is shrinking

http://news.bbc.co.uk/1/hi/world/asia-pacific/7360077.stm

a) If the report is true, draw an AD/AS diagram to show the effect on the Japanese AS curve and the effect on the Japanese macro economy
b) Suggest 3 reasons why this might not actually happen

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