• 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
Last day to sign up for AP Exam
Last day to sign up for AP Exam

... We also assume that in the long run the economy ...
Second Midterm and Answers
Second Midterm and Answers

... 1. Print your last name, first name, and middle initial in the spaces marked "Last Name," "First Name," and "MI." Fill in the corresponding bubbles below. 2. Print your student ID number in the space marked "Identification Number." Fill in the bubbles. 3. Write the number of the discussion section y ...
MASSIMO GIULIODORI - Universiteit van Amsterdam
MASSIMO GIULIODORI - Universiteit van Amsterdam

... “Essays on the Monetary Economics of Low Income Countries” by Harold P.E. Ngalawa, University of Cape Town, May 2010 (supervisor: Prof. Nicola Viegi) ...
CHAPTER 12
CHAPTER 12

... decreases, the purchasing power of currency and checking account balances increases; therefore, households feel less need to save and are likely to buy a greater quantity of goods and services. Second, a lower price level decreases interest rates, which results in additional spending on investment g ...
Econ 122a. Fall 2013. Note on definition of potential output Potential
Econ 122a. Fall 2013. Note on definition of potential output Potential

... technological efficiency. Potential GDP tends to grow steadily because inputs like labor and capital and the level of technology change quite slowly over time. By contrast, actual GDP is subject to large business-cycle swings if spending patterns change sharply. During business downturns, actual GDP ...
President’s Report Board Directors
President’s Report Board Directors

... personal consumption expenditures, private inventory investment, exports, residential fixed investment, nonresidential fixed investment, and state and local government spending. Those effects were partly offset by a negative contribution from federal government spending. Imports, which are a subtrac ...
unit # 3 > aggregate demand and supply plus
unit # 3 > aggregate demand and supply plus

... how would you describe the condition of the economy ? Given this equilibrium level of output , at what point would the economy line on the PPC ? Explain your ...
chapter # 6 - how the markets work - supply
chapter # 6 - how the markets work - supply

... how would you describe the condition of the economy ? Given this equilibrium level of output , at what point would the economy line on the PPC ? Explain your ...
Government stability size and macroeconomic
Government stability size and macroeconomic

... the destabilizing effects of taxes? Much of the observed effect results from the increase in the labor supply elasticity brought about by a higher tax rate, through its negative impact on steady state employment. lo The higher labor supply elasticity enhances the response of employment to a given te ...
Circular Flow: Drawing Further Inspiration from William Harvey
Circular Flow: Drawing Further Inspiration from William Harvey

... The saving of the saving classes represents the capital of the global system; the nutrients passing to the saving class but not required by them for consumption purposes.13 The most direct way for the saving class to allocate this capital is via their companies as equity capital, through purchases o ...
Money and Economic Stability in the ISLM World
Money and Economic Stability in the ISLM World

... – There are two alternative LM curves: LMsteep and LMflat with two IS curves representing shifts in autonomous investment – Shift of the IS curve will result in much greater variations in economic activity with a flat LM curve – This is a result of greater variations in the rate of interest with the ...
Non-Keynesian Fiscal Policy effects
Non-Keynesian Fiscal Policy effects

... Policy were developed by David Ricardo and John Maynard Keynes. On the one hand, David Ricardo's Theory, known as Ricardian Equivalence, debates Fiscal Policy will never affect the economy along with private consumption since Government expenditures are considered to be constant over time. So, any i ...
Budget Concepts - College of Liberal Arts
Budget Concepts - College of Liberal Arts

... budget years is outlays (generally listed as “O” in budget documents). Revenues or receipts are the money collected each year in taxes, social insurance contributions, and similar. When the government spends more than it collects a deficit occurs; when revenues exceed outlays a surplus occurs. The n ...
App 20
App 20

... Consumption is partly autonomous (the $1 trillion part, which people would spend no matter what their income, which depends on the current interest rate, real wealth, debt, and expectations), and partly induced, which means it depends on income, the portion that’s equal to 75 percent of income. ...
(a) Assume an economy is in internal balance but not external balan
(a) Assume an economy is in internal balance but not external balan

... What has happened in the market for non-tradeables? As the relative price of non-tradeables has fallen, the consumption of non-tradeables has increased and the production of non-tradeables has fallen. This has led to excess demand in the market for nontradeables, and therefore inflation at point D. ...
increase
increase

... b. Income in the U.S. would be redistributed from the rich to the poor. c. The U.S. standard of living would increase. d. The United States economy would become less efficient. 6. (*58%) Mary Jane is a lawyer who can earn $150 per hour in her law practice. She is also an excellent carpenter who can ...
Forecasting the 2008 Presidential Election
Forecasting the 2008 Presidential Election

... Table 2 displays the fiscal model, combining either FISCAL or FPRIME with the four aforementioned controls, estimated over two different periods, 1880–2004 and 1916–2004. The longer period includes all 32 elections for which Fair provides data. The shorter interval is the one over which Fair estimat ...
M.A. –ECONOMICS (Prev.) - 2013 Paper - I
M.A. –ECONOMICS (Prev.) - 2013 Paper - I

M. Finkler Macroeconomic Theory Answers to Problem Set #7 This
M. Finkler Macroeconomic Theory Answers to Problem Set #7 This

... Policy credibility means that the public believes the policy will be implemented, and, furthermore, acts on such beliefs even with occasional evidence to the contrary. Rules refer to formulas or equations. A monetary policy rule means an explicit equation that one might employ to predict the rate of ...
Government Spending Government Purchases versus Transfer
Government Spending Government Purchases versus Transfer

... Graphing the C + I + G + Xn Line To keep the graph as simple as possible, we are assuming the government spends a constant amount of money regardless of the level of disposable income ...
Inflation & Growth
Inflation & Growth

...  Inflation is a tax on money holders. A change in the rate of inflation can therefore change wealthholders’ preference between holding their wealth in the form of money or in the form of real assets and thus affect the growth rate. However, given the small proportion of total wealth which is held i ...
The Effect of Government Purchases on Economic Growth in Japan
The Effect of Government Purchases on Economic Growth in Japan

... We start by defining Y as Japan’s real GDP, G as the real value of central and local government purchases, Gc as the real value of government consumption, and Gi as the real value of government investment (where G ≠ Gc + Gi precisely, due to discrepancies). The first differences in these variables a ...
03/RT/2015 The macroeconomic effects of the Euro Area`s fiscal
03/RT/2015 The macroeconomic effects of the Euro Area`s fiscal

... of annual Euro Area GDP from 2011 and 2013. The switch to fiscal austerity has been associated with a return of the EA economy to recession by the end of 2011, from which it emerged by the middle of 2013, thereby repeatedly undershooting predictions by the European Commission, the IMF and the OECD. ...
Government Spending1
Government Spending1

... Graphing the C + I + G + Xn Line To keep the graph as simple as possible, we are assuming the government spends a constant amount of money regardless of the level of disposable income ...
PAPER SERIES CURRENT MID ANTICIPATED DEFICITS, INTEREST RATES AND ECONOMIC ACTIVITY
PAPER SERIES CURRENT MID ANTICIPATED DEFICITS, INTEREST RATES AND ECONOMIC ACTIVITY

... This section focuses on the effects of debt and deficits on the equilibrium sequence of interest rates in a full employment economy. This is needed to understand their effects in an economy which may not be at full employment; it is also of more than academic interest as some of the larger anticipat ...
< 1 ... 225 226 227 228 229 230 231 232 233 ... 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