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... Another factor that can change consumption and shift aggregate demand is tax policy. A cut in personal income taxes leaves people with more after-tax income, which may induce them to increase their consumption. The federal government in the United States cut taxes in 1 964, 1981, 1 986, 1 997, and 2 ...
... Another factor that can change consumption and shift aggregate demand is tax policy. A cut in personal income taxes leaves people with more after-tax income, which may induce them to increase their consumption. The federal government in the United States cut taxes in 1 964, 1981, 1 986, 1 997, and 2 ...
Chapter 17 Macroeconomic and Industry Analysis
... output as they encourage investors to undertake low productivity projects with substantial tax shelter benefits C. Income redistribution payments will exert little impact on real aggregate supply as they do not consume resources directly D. A tax reduction will increase the disposable income of hous ...
... output as they encourage investors to undertake low productivity projects with substantial tax shelter benefits C. Income redistribution payments will exert little impact on real aggregate supply as they do not consume resources directly D. A tax reduction will increase the disposable income of hous ...
fiscal space for what? analytical issues from a human
... A fiscal rule that recognizes the distinction between current and capital expenditure line items in the budget will ensure that fiscal restraint does not discourage growth in the aggregate public capital stock. While some allowances may be made for negative current deficits during a development tran ...
... A fiscal rule that recognizes the distinction between current and capital expenditure line items in the budget will ensure that fiscal restraint does not discourage growth in the aggregate public capital stock. While some allowances may be made for negative current deficits during a development tran ...
Should the marginal tax rate be negative? Ragnar Frisch on the
... Nevertheless, it is this which in the final instance is decisive. In the current debates about reconstruction and labour shortage there is no doubt that what people have in mind, if only unconsciously, is something much more fundamental than the balance between supply and demand, which may imply ...
... Nevertheless, it is this which in the final instance is decisive. In the current debates about reconstruction and labour shortage there is no doubt that what people have in mind, if only unconsciously, is something much more fundamental than the balance between supply and demand, which may imply ...
Aggregate Demand and Supply Aggregate Demand and
... households and businesses are pessimistic about economic conditions. This condition causes AD1 to shift leftward to AD2. At a price level of 150, the immediate effect is that aggregate output exceeds aggregate spending by $2 trillion (E1 to E), and unexpected inventory accumulation occurs. To elimi ...
... households and businesses are pessimistic about economic conditions. This condition causes AD1 to shift leftward to AD2. At a price level of 150, the immediate effect is that aggregate output exceeds aggregate spending by $2 trillion (E1 to E), and unexpected inventory accumulation occurs. To elimi ...
A-level Economics Mark Scheme Unit 02
... for explaining why it might lead to a fall in investment. Recession (2) means that consumer spending (or aggregate demand) falls (2), hence firms will have less need to increase capacity (2), their profits are likely to be falling (2) and so they are likely to cut back on investment to ensure their ...
... for explaining why it might lead to a fall in investment. Recession (2) means that consumer spending (or aggregate demand) falls (2), hence firms will have less need to increase capacity (2), their profits are likely to be falling (2) and so they are likely to cut back on investment to ensure their ...
An Analysis of Cigarette Affordability Corné van Walbeek Evan Blecher
... incomes. But the growth in average per capita income does have a huge impact on the demand for cigarettes. This paper argues that policy makers should not only focus on price and tax, but on affordability as well. Affordability considers the simultaneous effect of income and cigarette price on a per ...
... incomes. But the growth in average per capita income does have a huge impact on the demand for cigarettes. This paper argues that policy makers should not only focus on price and tax, but on affordability as well. Affordability considers the simultaneous effect of income and cigarette price on a per ...
Markup Cycles, Dynamic Misallocation, and Amplification
... effects of markups. In their model, countercyclical markups can transmit aggregate demand shocks by the government to the real economy. In our paper, we shut down the real effects of markup levels by excluding government expenditures and assuming inelastic labor supply. Instead, we focus on the misa ...
... effects of markups. In their model, countercyclical markups can transmit aggregate demand shocks by the government to the real economy. In our paper, we shut down the real effects of markup levels by excluding government expenditures and assuming inelastic labor supply. Instead, we focus on the misa ...
Other-Regarding Preferences in General Equilibrium - U
... This paper investigates the extent to which the classic results of general-equilibrium theory hold true in economies with ORP-affected individuals. We start with a general model where agents’ preferences are defined over allocations and agents’ opportunity sets instead of only their own consumption ...
... This paper investigates the extent to which the classic results of general-equilibrium theory hold true in economies with ORP-affected individuals. We start with a general model where agents’ preferences are defined over allocations and agents’ opportunity sets instead of only their own consumption ...
What`s so Great about the Great Moderation?
... World War II, and then drop rapidly until the mid- to late 1960s. This Postwar Moderation typically yields the largest decline in output growth volatilities. For all countries, volatilities of both output growth and inflation fall more during this Postwar Moderation than during the Great Moderation, ...
... World War II, and then drop rapidly until the mid- to late 1960s. This Postwar Moderation typically yields the largest decline in output growth volatilities. For all countries, volatilities of both output growth and inflation fall more during this Postwar Moderation than during the Great Moderation, ...
Investment and Profits: Causality Analysis in Selected eu Countries
... their studies Bar-Yosef et al. (1987) found that investment does not create profits, but profits raise investment, defined in terms of Granger causal effect relationship. They also found that the profits are a determinant of companies’ business investment. Shapiro, Sims, and Hughes (1983) and McFetr ...
... their studies Bar-Yosef et al. (1987) found that investment does not create profits, but profits raise investment, defined in terms of Granger causal effect relationship. They also found that the profits are a determinant of companies’ business investment. Shapiro, Sims, and Hughes (1983) and McFetr ...
Identifying Foreign Trade Partners to Stabilize the Erie Economy
... Business cycles can be problematic for an economy and the people in it. Because cycles can have such detrimental effects on a local economy, it is useful to try to figure out how to lessen the severity and effects of business cycles as they occur. Trading with an economy that is counter-cyclical to ...
... Business cycles can be problematic for an economy and the people in it. Because cycles can have such detrimental effects on a local economy, it is useful to try to figure out how to lessen the severity and effects of business cycles as they occur. Trading with an economy that is counter-cyclical to ...
A model-based analysis of the macroeconomic
... remain no better than low-skilled over the long run – there is just a 0.14 percentage point increase in the aggregate unemployment rate because labour demand is raised by supplydriven cuts in real wages as well as shifts in demand towards employees with different qualifications. In this worst-case s ...
... remain no better than low-skilled over the long run – there is just a 0.14 percentage point increase in the aggregate unemployment rate because labour demand is raised by supplydriven cuts in real wages as well as shifts in demand towards employees with different qualifications. In this worst-case s ...
The determinants of liberalization of FDI policy in developing countries
... the 1980s and over five-fold (520%) during the 1990s, reaching $22.9 billion in 1999. FDI inflows as a percentage of gross fixed capital formation in developing countries grew from 3.6% in 1990 to 14.3% by the decade’s end. Last, stocks of FDI as a percentage of GDP doubled during the 1990s, increa ...
... the 1980s and over five-fold (520%) during the 1990s, reaching $22.9 billion in 1999. FDI inflows as a percentage of gross fixed capital formation in developing countries grew from 3.6% in 1990 to 14.3% by the decade’s end. Last, stocks of FDI as a percentage of GDP doubled during the 1990s, increa ...
ec onomic s - chrisbonline.com
... its relevance to what they have just been taught? For example, you have introduced your students to the idea of profit maximisation. You now want them to consider its relevance to real-world business decision making. Ask them the following discussion question: Imagine you were the managing director ...
... its relevance to what they have just been taught? For example, you have introduced your students to the idea of profit maximisation. You now want them to consider its relevance to real-world business decision making. Ask them the following discussion question: Imagine you were the managing director ...
The Formation and Development Trends of the Consulting Market in... Mediterranean Journal of Social Sciences Ilshat T. Sabirov MCSER Publishing, Rome-Italy
... revenues from tax consulting í 21% for a year compared to 12% growth from legal consulting. Activation of these types of consulting services is associated by the experts with the growth of investment attractiveness of such types of businesses as transactions with land and real estate, construction, ...
... revenues from tax consulting í 21% for a year compared to 12% growth from legal consulting. Activation of these types of consulting services is associated by the experts with the growth of investment attractiveness of such types of businesses as transactions with land and real estate, construction, ...
Ragnar Nurkse's balanced growth theory
The balanced growth theory is an economic theory pioneered by the economist Ragnar Nurkse (1907–1959). The theory hypothesises that the government of any underdeveloped country needs to make large investments in a number of industries simultaneously. This will enlarge the market size, increase productivity, and provide an incentive for the private sector to invest.Nurkse was in favour of attaining balanced growth in both the industrial and agricultural sectors of the economy. He recognised that the expansion and inter-sectoral balance between agriculture and manufacturing is necessary so that each of these sectors provides a market for the products of the other and in turn, supplies the necessary raw materials for the development and growth of the other.Nurkse and Paul Rosenstein-Rodan were the pioneers of balanced growth theory and much of how it is understood today dates back to their work.Nurkse's theory discusses how the poor size of the market in underdeveloped countries perpetuates its underdeveloped state. Nurkse has also clarified the various determinants of the market size and puts primary focus on productivity. According to him, if the productivity levels rise in a less developed country, its market size will expand and thus it can eventually become a developed economy. Apart from this, Nurkse has been nicknamed an export pessimist, as he feels that the finances to make investments in underdeveloped countries must arise from their own domestic territory. No importance should be given to promoting exports.