Contractionary fiscal policy

What does the term 'purchasing power' refer to?

• The amount of money left for a household after income taxes have been deducted

• A sustained increase in the general price level of goods and services in an economy

• The amount of goods and services that can be purchased with a unit of currency

What is the impact of a contractionary fiscal policy on the AD curve?

• It causes the curve to steepen

• It shifts the curve to the right

• It shifts the curve to the left

What was the debt to GDP ratio in Japan that led to the implementation of a contractionary fiscal policy?

• 180%

• 200%

• 150%

What was the name of the maglev train project in Japan that was scaled down due to the contractionary fiscal policy?

• Kyushu Shinkansen

• Tokaido Shinkansen

• Chuo Shinkansen

What was the impact of the income tax increase on high-income individuals in Japan?

• Decrease in taxes

• Increase in disposable income

• Decrease in disposable income

What was the effect of the contractionary fiscal policy on machinery and equipment investments in Japan?

• Decreased by 5%

• Remained the same

• Decreased by 2%

What was the impact of the contractionary fiscal policy on Japan's budget deficit?

• Increased

• Remained the same

• Decreased

What was the impact of the contractionary fiscal policy on wage growth in Japan?

• Stagnated for low-skilled workers

• Decreased for high-income workers

• Remained the same for all workers

What was the negative impact of the contractionary fiscal policy on consumers in Japan?

• Decreased purchasing power

• Increased living standards

• Increased disposable income

What was the overall impact of Japan's contractionary fiscal policy on economic growth and societal well-being?

• Positive impact on both economic growth and societal well-being

• Negative impact on economic growth but positive impact on societal well-being

• Negative impact on both economic growth and societal well-being