(a)[2]
Use Table 1 to identify two periods during which the Consumer Prices Index fell in Japan.
(b)[2]
Explain how Table 2 could be used to support the view that lower oil prices have contributed to downward pressure on consumer prices.
(c)[4]
With reference to the year-on-year price changes shown in Table 2, explain which category of spending had the biggest impact on the real income of the average household in Japan in 2015.
(d)[6]
Explain whether expansionary monetary policy is likely to raise prices and help Japan achieve its 2% inflation target.
(e)[6]
Discuss whether every individual and firm in Japan would gain from an increase in the rate of inflation.