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What is expansionary fiscal policy?

• A policy that reduces taxes and increases government spending

• A policy that increases taxes and reduces government spending

• A policy that reduces taxes and reduces government spending

• A policy that increases taxes and increases government spending

What is the fiscal multiplier?

• The ratio of change in national income arising from a change in government spending

• The ratio of change in taxes arising from a change in national income

• The ratio of change in national income arising from a change in taxes

• The ratio of change in government spending arising from a change in national income

What is stagflation?

• An economic condition characterized by rapid economic growth and increasing rate of inflation

• An economic condition characterized by slow economic growth and decreasing rate of inflation

• An economic condition characterized by rapid economic growth and decreasing rate of inflation

• An economic condition characterized by slow economic growth and increasing rate of inflation

What was the impact of expansionary fiscal policy on Japan's government debt-to-GDP ratio?

• It remained stable, hovering around 80% of the GDP

• It decreased significantly, reaching below 50% of the GDP

• It fluctuated, reaching a peak of 120% of the GDP

• It rose exponentially, ultimately surpassing 100% of the GDP

What was the impact of expansionary fiscal policy on Japan's unemployment in the long run?

• It generally increased, rising from 4.8% in 1998 to 5.3% in 2002

• It remained stable, hovering around 3% throughout the period

• It decreased significantly, reaching below 3% by 2004

• It fluctuated, reaching a peak of 6% in 2000