• Study Resource
  • Explore Categories
    • Arts & Humanities
    • Business
    • Engineering & Technology
    • Foreign Language
    • History
    • Math
    • Science
    • Social Science

    Top subcategories

    • Advanced Math
    • Algebra
    • Basic Math
    • Calculus
    • Geometry
    • Linear Algebra
    • Pre-Algebra
    • Pre-Calculus
    • Statistics And Probability
    • Trigonometry
    • other →

    Top subcategories

    • Astronomy
    • Astrophysics
    • Biology
    • Chemistry
    • Earth Science
    • Environmental Science
    • Health Science
    • Physics
    • other →

    Top subcategories

    • Anthropology
    • Law
    • Political Science
    • Psychology
    • Sociology
    • other →

    Top subcategories

    • Accounting
    • Economics
    • Finance
    • Management
    • other →

    Top subcategories

    • Aerospace Engineering
    • Bioengineering
    • Chemical Engineering
    • Civil Engineering
    • Computer Science
    • Electrical Engineering
    • Industrial Engineering
    • Mechanical Engineering
    • Web Design
    • other →

    Top subcategories

    • Architecture
    • Communications
    • English
    • Gender Studies
    • Music
    • Performing Arts
    • Philosophy
    • Religious Studies
    • Writing
    • other →

    Top subcategories

    • Ancient History
    • European History
    • US History
    • World History
    • other →

    Top subcategories

    • Croatian
    • Czech
    • Finnish
    • Greek
    • Hindi
    • Japanese
    • Korean
    • Persian
    • Swedish
    • Turkish
    • other →
 
Profile Documents Logout
Upload
Macroeconomic Theory and Policy
Macroeconomic Theory and Policy

... monetary policy in determining real output, employment and income. Persistent unemployment and inflation were impossible in the classical analysis. They favoured free, open and liberal market policy and in which the main objective of the government was to keep law and order. Invisible hand of the pr ...
Chapter 15 Chapter Outline
Chapter 15 Chapter Outline

... – Automatic stabilizers and the full-employment deficit • Automatic stabilizers cause fiscal policy to be countercyclical by changing government spending or taxes automatically • One example is unemployment insurance, which causes transfers to rise in recessions • The most important automatic stabil ...
Are we nearly there yet?
Are we nearly there yet?

... chance to respond to better-than-expected economic news in recent months, following grim forecasts about the outlook for Brexit Britain back in November’s Autumn Statement. Both have largely ignored it. In the short-term growth forecasts have been revised up, to 2 per cent in 2017 from 1.4 per cent. ...
View/Open
View/Open

... regions, free mobility for capital and labor is assumed. It must be noted that among countries such mobility does not occur. The land factor is specific to the agricultural sectors, while natural resources are specific to certain sectors (for extraction of mineral resources and energy). Unemployment ...
NBER WORKING PAPER SERIES THE MACROECONOMICS OF SUBSISTENCE POINTS Morten O. Ravn
NBER WORKING PAPER SERIES THE MACROECONOMICS OF SUBSISTENCE POINTS Morten O. Ravn

... between consumption and leisure. These effects are the same in our model as in models that assume subsistence points at the level of aggregate consumption. ...
Module 22 Saving and Investment
Module 22 Saving and Investment

... result will be higher interest rates and smaller investment •If a change in tax law encourages greater saving, the result will be lower interest rates and greater investment. ...
Principles of Economics, Case and Fair,9e
Principles of Economics, Case and Fair,9e

... durable goods Goods that last a relatively long time, such as cars and household appliances. nondurable goods Goods that are used up fairly quickly, such as food and clothing. services The things we buy that do not involve the production of physical things, such as legal and medical services and edu ...
Working  Paper WAGNER’S LAW IN 19 CENTURY GREECE: A COINTEGRATION AND
Working Paper WAGNER’S LAW IN 19 CENTURY GREECE: A COINTEGRATION AND

... relative to economic activity was proposed by Wagner as back as in the late 19th century (Wagner, 1890). Wagner stated that during the industrialisation process, as the real income per capita of a nation increases, the share of public expenditures in total expenditure increases. According to him, th ...
Optimal monetary and fiscal policy in a currency union Journal of
Optimal monetary and fiscal policy in a currency union Journal of

... in a sense to be made precise below – which poses no inflationary pressures on the union. We argue that, in the absence of such coordinated response by the national fiscal authorities, the union's central bank may find it optimal to deviate from a strict inflation targeting policy. Second, under the opt ...
How to restore a healthy financial sector that supports long
How to restore a healthy financial sector that supports long

... The links from credit overexpansion to slower growth and greater income inequality underline the long-term benefits of avoiding too much debt. Macro-prudential instruments provide tools to keep credit in check. Caps on debt-service-to-income ratios have been identified as effective in this regard. M ...
Lecture 9 - University of California, Berkeley
Lecture 9 - University of California, Berkeley

... A country with greater investment opportunities than savings can fill the savings gap by borrowing from abroad. International capital flows allow countries to run trade imbalances. ...
Document
Document

... • The rate of economic growth varies over time. • As the growth rate varies, so do the levels of demand and unemployment within the economy. • These changes are part of the business cycle. • The effects of the business cycle on small businesses can be significant. © 2009 Ian Marcousé and Naomi Birch ...
06 How Macroeconomics Lost Complexity Z1
06 How Macroeconomics Lost Complexity Z1

... could exist independently of the microeconomic reality. To understand this turbulence, one needed a separate field of study; macroeconomics was to be that separate field. Macroeconomics was initially called macro dynamics; it was the study of dynamic laws that operate at an aggregate level, but not ...
Fiscal Policy Issues for Tanzania
Fiscal Policy Issues for Tanzania

... stimulus; discretionary policy may have a delayed, limited and temporary effect, with no guarantee that the overall impact will be of the right sign, and runs the risk of becoming embedded. In other words, the beneficial impact on the economy may be short-lived, but the fiscal changes that delivered ...
Household and Firm Behavior
Household and Firm Behavior

... from sources other than working—inheritances, interest, dividends, transfer payments, and so on. An unexpected increase in nonlabor income will have a positive effect on a household’s consumption. An unexpected increase in wealth or nonlabor income leads to a decrease in labor supply. ...
CONSTITUTIONAL REFORM: A PREREQUISITE FOR SUPPLY-SIDE ECONOMICS
CONSTITUTIONAL REFORM: A PREREQUISITE FOR SUPPLY-SIDE ECONOMICS

... the price to be paid for the benefits that political democracy offers. But achieving the ideals of democracy does not depend on any particular institutional arrangement, and some arrangements can be expected to perform better than others.4 Before returning to the challenge that political myopia pose ...
El establecimiento de tributos sobre la las emisiones
El establecimiento de tributos sobre la las emisiones

... consisting of taxing polluting emissions and recycling the so-obtained revenue by reducing other distorting taxes, in such a way that public revenue remains unchanged, can give rise to the so-called double dividend, that is, to get an environmental improvement (green dividend) and reduce fiscal dist ...
MacroChap008
MacroChap008

... The process continued until the economy settled at a low-level equilibrium, far below the potential level of income. © 2006 McGraw-Hill Ryerson Limited. All rights reserved. ...
Monetary Misperceptions: Optimal Monetary Policy
Monetary Misperceptions: Optimal Monetary Policy

Chapter 12 - Dr. George Fahmy
Chapter 12 - Dr. George Fahmy

... sloped, increases in aggregate demand raise both output and the price level. A. W. Phillips, investigating unemployment and price/wage increases over time, found that low rates of unemployment in Great Britain were associated with high rates of price/wage rate increase, while higher levels of unempl ...
Before Growth: The Malthusian Model
Before Growth: The Malthusian Model

... support a family. This tended to keep fertility rates relatively low. In practice, as discussed in Greg Clark’s book on the Malthusian model, the evidence for a link between living standards and birth rates prior to the Industrial Revolution is fairly weak and I will assume a constant birth rate in ...
Chapter 16 Output and the Exchange Rate in the Short Run
Chapter 16 Output and the Exchange Rate in the Short Run

... • Inflation bias – High inflation with no average gain in output that results from governments’ policies to prevent recession ...
Module H4 Session 2 Guidance for Trainers
Module H4 Session 2 Guidance for Trainers

... so income is flowing out of the country to foreign investors (as in Chile). ...
New Zealand
New Zealand

... Each budget process will have its own unique characteristics that will inevitably lead to differences between years. These will reflect the political environment, the macroeconomic environment and the more detailed priorities of the government. The first budget process using output-based information ...
UK - WikiLeaks
UK - WikiLeaks

... Over the period 2009 – 2010, Government tax revenue is estimated to diminish by an average of just under 8 per cent a year, after which it would start growing by just over 7 per cent a year towards the end of the review period. Between 2010 – 2013, annual revenue estimates are set to be on average E ...
< 1 ... 115 116 117 118 119 120 121 122 123 ... 580 >

Fiscal multiplier

In economics, the fiscal multiplier (not to be confused with monetary multiplier) is the ratio of a change in national income to the change in government spending that causes it. More generally, the exogenous spending multiplier is the ratio of a change in national income to any autonomous change in spending (private investment spending, consumer spending, government spending, or spending by foreigners on the country's exports) that causes it. When this multiplier exceeds one, the enhanced effect on national income is called the multiplier effect. The mechanism that can give rise to a multiplier effect is that an initial incremental amount of spending can lead to increased consumption spending, increasing income further and hence further increasing consumption, etc., resulting in an overall increase in national income greater than the initial incremental amount of spending. In other words, an initial change in aggregate demand may cause a change in aggregate output (and hence the aggregate income that it generates) that is a multiple of the initial change.The existence of a multiplier effect was initially proposed by Keynes student Richard Kahn in 1930 and published in 1931. Some other schools of economic thought reject or downplay the importance of multiplier effects, particularly in terms of the long run. The multiplier effect has been used as an argument for the efficacy of government spending or taxation relief to stimulate aggregate demand.In certain cases multiplier values less than one have been empirically measured (an example is sports stadiums), suggesting that certain types of government spending crowd out private investment or consumer spending that would have otherwise taken place. This crowding out can occur because the initial increase in spending may cause an increase in interest rates or in the price level. In 2009, The Economist magazine noted ""economists are in fact deeply divided about how well, or indeed whether, such stimulus works"", partly because of a lack of empirical data from non-military based stimulus. New evidence came from the American Recovery and Reinvestment Act of 2009, whose benefits were projected based on fiscal multipliers and which was in fact followed - from 2010 to 2012 - by a slowing of job loss and private sector job growth.
  • studyres.com © 2026
  • DMCA
  • Privacy
  • Terms
  • Report