I have a 2 part practice question on Japan and wondering how I would answer it and what the actual answer is

I have a 2 part practice question on Japan and wondering how I would answer it and what the actual answer is

  • What type of policy interventions are likely given the country context – Monetary? / Fiscal?
  • How exposed is the economy to internal shocks (eg. fluctuations in demand for money / regional shocks )