What factors will determine how much government spending

Reference no: EM133377147

Question: Below is an excerpt from "Japan's economy minister says government spending alone won't fill output gap," Reuters, Dec. 1, 2020. What factors will determine how much government spending (G) is included in Japan's fiscal stimulus package?

Japan's government will compile a stimulus package next week that would seek to fill slack in the economy not just with spending but incentives to boost green and digital investment, economy minister Yasutoshi Nishimura said on Wednesday.

Nishimura said it was crucial for the government to fill the economy's 34-trillion-yen ($326 billion) output gap, caused in large part by the hit to growth from COVID-19, to prevent Japan from sliding back into deflation.

Reference no: EM133377147

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