Contractionary fiscal policy does In the 1960s, Japan was the fastest-growing major economy, and it also: spent a smaller share of its GDP on investment goods than did other major economies. spent a larger share of its GDP on investment goods than did other major economies. spent more of its GDP on national defense than did any other country, except for China was the first Asian country to join the European Union include: a decrease in government transfers. a decrease in government purchases. a decrease in tax rates. an increase in marginal tax rates