According to an article in the Wall Street Journal, in late 2014, the Japanese economy experienced a

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According to an article in the Wall Street Journal, in late 2014, the Japanese economy experienced a large increase in business inventories. The article noted, "The large buildup of inventories is a reflection that the ... drop in demand was bigger than expected." Does it matter that Japanese firms didn't expect the drop in demand? Won't a decline in demand always lead to an increase in firms' holdings of inventories? Briefly explain.
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Economics

ISBN: 978-0134106243

6th edition

Authors: R. Glenn Hubbard

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