How has Japan fared with it’s economies booms and slumps? This investigation is based on stage 4 unit 1 of the Business and Economics A-level course, “What happens in booms and slumps?”. The unit focuses how people and businesses are affected by booms and slumps, why they continuously appear and the governments role in helping to control these two events. The investigation will therefore focus on Japan and the way booms and slumps affect the Japanese businesses and people. To determine this the investigation will focus on Japanese economic growth, inflation, unemployment rates, trade and Government economic policies. It is true that in a boom there are large amounts of trade. High demand, high GDP, low unemployment and high inflation (more spending). In a slump the opposite is true. ŸRecession - High Unemployment, low wages, low demand ŸHigh Inflation - More spending, higher demand, higher prices, higher costs of production. ŸLow Inflation - Less spending, low demand, low costs of production. ŸDownward Multiplier Effect - This occurs when there is too much demand. Then when there is a slump a deficit occurs because of the surplus that might have occurred in the boom. It is difficult to begin to analyse the Japanese economy since the information about it is very mixed. On one hand we have the news that Japan is coming out of a recession and in the other that Japan is going into one. The information released by the government assures us that Japan is improving its economic stability, while the media and world banks tell the opposite story.The Bank Of Japan is looking to ease its monetary policy (control of interest rates to control bank lending) and to fight the deflation by creating inflation. While on the other side we are being told that the unemployment rate is easing ...