In 2008, Japan's government approved a $1 trillion fiscal stimulus plan comprised of both tax cuts and government expenditure increases. As a result

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Quizplus · Accepted Answer

A fiscal stimulus plan involving tax cuts and increased government expenditure typically leads to an increase in aggregate demand, as both actions put more money into the hands of consumers and businesses, encouraging spending and investment.

In 2008, Japan's Government Approved a $1 Trillion Fiscal Stimulus