Question: Japan has a flexible exchange rate system. It experienced multiple lockdowns in 2021 due to COVID-19. Please use appropriate diagrams to explain what policy measure(s)

Japan has a flexible exchange rate system. It experienced multiple lockdowns in 2021 due to COVID-19. Please use appropriate diagrams to explain what policy measure(s) Japan may undertake to maintain full employment: 1) if foreign demand is constant; or 2) if foreign demand declines.

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