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In the 1970's, everyone was working in Japan. People saved money and spent money. They saved less of their income than before 1970's. Their cars were the best in the world and they I were exported throughout the world. Their manufacturing was strong. Their corporate management was..strong and the model for and envy of the world. Their stock market kept going up and up and up because investors were borrowing money from commercial banks to invest in the stock market. Real estate prices were going higher and higher because it was easy to get a loan from the commercial banks. The cost of living went up substantially.
1. Was this period a boom scenario, bust scenario, stagflation scenario or supply side expansion scenario?
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3. Would the aggregate demand curve or aggregate supply shift and in which direction?
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